Types of health insurance

Introduction

This is a type of insurance that provide coverage to part or whole of the surgical and medical expenses that may be incurred by the person insured. With this insurance coverage, the insurance company can either directly pay the health care provider or refund the insured for the expenses incurred as a result of injury or illness. There are various types of health insurance coverage that you can select from in the insurance companies.

Various types of health insurance

There are various types of health insurance which are arranged according to the benefits level that they provide namely: catastrophic, bronze, silver, gold and platinum. The bronze level tends to provide least coverage while the platinum level provides most coverage. All these coverage are different since each one of them pays a certain share of the costs for the insured person and the details are different in all these plans. Additionally, all these plans tend to have varying deductibles. The least expensive level tends to have the highest deductible. Deductible simply refers to the amount of money that one has to pay before the insurance can pay the remaining health costs.
There are five common types of health insurance plans namely:
• Health Maintenance Organization plans
HMOs happen to be the most common and popular type of health insurance plans that you can buy from various insurance companies. They ensure provision any health services using a network of various healthcare facilities and providers. They mostly provide coverage to numerous types of preventive care such as visiting specialists.
• Preferred Provider Organization plans
PPO plan provide cover to you and you entire family by ensuring that you can get all health services such as visiting specialists from various health care providers included in the network of the insurance firm, even without having any referral. This type of health insurance plan may provide some coverage outside your network.
• Exclusive provider Organization plans
An Exclusive Provider Organization (EPO) plan ensures that you can access services from all healthcare providers that are within the network of the EPO, inclusive of specialists. EPO plan doesn’t allow any coverage outside your network, apart for emergencies. However, you can use health services outside your network if you are willing and able to personally cater for the medical costs.
• Point Of Service plans
These are a combination of PPO and HMO plans. With the POS plan you must set aside a primary care medical practitioner for frequent check-ups and also referrals.
• High Deductible Health Plan
This type of health insurance plan tends to cross various categories in the sense that some are HMO and others may be PPO or EPO plans. With this health insurance plan, you have to meet a very high deductible before the insurance coverage finally comes in.

Conclusion

Knowing the various types of health insurance coverage available is crucial as it will help you as you can select the plan that perfectly fits your needs and budget.

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