Understanding Health Insurance Plans

Health Insurance is a medical expense supporter which allow individuals and their families to reduce their healthcare expenses by choosing the best possible insurance company with a plan which can cover most of their health expenditures. Health problem and accidents can occur anytime No one except God have any idea about it. But we have a choice to be prepared for such tragic events which may or may not occur in our life. It is important to choose a plan which is affordable and cover both In and out of network services. Premium, deductibles, Copay and Coins are also part of insurance plan which might take your insurance plan towards expensive side. So it is very crucial to look after all these aspects of an insurance plan. Don’t let the insurance companies manipulate you by only highlighting positives and ignoring negatives traits of an Insurance plan.

Some of the most common insurance Plans are:

  1. Health Maintenance Organization (HMO)
  2. Preferred Provider Organization (PPO)
  3. Point of Service (POS)
  4. Exclusive Provider Organization (EPO)
  • Health Maintenance Organization (HMO)

HMO is comprehensively the most cost efficient health plan with minimum premium and with No or minimal copay and deductibles. The main point of contract in this plan is a Primary care Physician through which single spot healthcare management is practiced. But there are certain restrictions in which out of network services are not covered except in case of emergency. In case of a specialist it is necessary to have referral from the PCP. Services without an authorization from the PCP is not covered under HMO plans.

  • Preferred Provider Organization (PPO):

PPO is more flexible and covers larger network of providers as compared to HMO plans. Here in this plan out of network services are also covered. There is no need to have a Primary care physician but in network services are considered more cherished than out of network services. PPO plans are more on the expensive side as they include High premiums, Copay, Deductibles and Coinsurance. But on the other side it also provides a wide range of choice of healthcare providers with no referrals and authorization requirements.

  • Point of Service (POS):

POS is a mishmash of HMO and PPO plans. Choosing a PCP is optional in this plan, providing out of network coverage. In case of opting for a PCP it leads towards PPO Plan but still covers out of network services with a higher out of pocket payments than In-network services. The main purpose of this plan is to allow HMO and PPO services at the same time without any contradiction.

In case of PCP referral, out of network services are covered at In-network rate and In case if there is no referral from the primary care provider then In-network services might be expensive and is not considered at In-network rates.

  • Exclusive Provider Organization:

EPO is a type of managed care plan in which you don’t need to choose PCP and can only avail in network coverage only. EPO plan has a limited range of providers just like HMO plan. EPO is more easy and convenient as compared to other plans. Coverage outside network is covered in emergency situations

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