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Posts Tagged ‘Plan’

Types Of Health Insurance Plans

Monday, July 9th, 2012

When individuals approach any health agent for health insurance help, insurance agents suggest four types of policies to them. They are as follows:

Major medical plan:

Major medical plans are those plans in which individuals need to pay deductibles to health coverage companies to obtain benefits. Deductibles are nothing but a part of the amount, which people have to pay while applying for a policy. Later, health insurance firms pay about 80% of medical bills and insurers have to pay the remaining 20% of billed amounts.

Buyers may select any doctors to get medical services and pay fees to these doctors directly. However, they need to obtain a bill and furnish it to the insurance companies, who in turn reimburse 80% of the bill amount to the insured. This type of health insurance plan is a traditional health plan.

HMO plan:

An HMO (Health Maintenance Organization) is a type of health policy that focuses mainly on life long health care of the insured. This plan is more affordable than the major medical plan. People need to select their doctors from a list of doctors furnished by insurance companies. These doctors provide medical services to them. If required, they also co-ordinate with other specialists and hospitals, to provide the best available health service.

As a result, most people across the US prefer this type of health plan.

PPO health plan:

PPO (Preferred Provider Organization) is similar to an HMO plan. Health insurers refer in-network doctors and insured people refer their own out-network doctors. Here, people may choose in-network or out-network doctors as per their wish.

However, if people choose out-network doctors they will have to shell out a huge amount as fee because in-network doctors charge a reasonable amount. Whether insured people choose in-network or out-network doctors, health companies pay only 80 % of the medical bill amount to insured people.

POS Health Plan:

POS (Point of service) health plan has properties of both PPO plan as well as of HMO plan. Here, people need to select the doctors referred by insurance companies. However, people may then seek treatment from out-network doctors after informing and taking permission from their in-network doctors. This plan is slightly more expensive than other health plans.

Thus, refer to this health insurance help and choose the best health plan to cover the medical bills so that the unexpected cost does not hamper the monthly budget..