A woman sits at her dining room table with laptop and financial reports doing her monthly budget. She is smiling at the ease of use as she works on her smart phone banking app to do monthly finances, pay taxes and save money for the future.
There are several types of health insurance, each with its associated benefits. Here are some of the most common types:
- Health Maintenance Organizations (HMOs): HMOs typically require members to select a primary care physician (PCP) who coordinates all of their healthcare needs. HMOs typically have lower out-of-pocket costs and require fewer paperwork, but may limit access to providers outside of the network.
- Preferred Provider Organizations (PPOs): PPOs allow members to choose from a network of providers or seek care outside of the network. However, going outside the network usually results in higher costs.
- Exclusive Provider Organizations (EPOs): EPOs are similar to PPOs but do not cover care outside of the network, except in emergencies.
- Point of Service Plans (POS): POS plans combine features of HMOs and PPOs. Members choose a PCP who coordinates care, but also have the option to seek care outside of the network.
- High Deductible Health Plans (HDHPs): HDHPs have lower monthly premiums but come with higher deductibles, meaning members pay more out of pocket before insurance kicks in. These plans are often paired with Health Savings Accounts (HSAs), which allow members to set aside pre-tax dollars for healthcare expenses.
- Catastrophic Health Insurance: These plans have very high deductibles and are designed to protect against major medical expenses like hospitalizations and surgeries.
Each type of health insurance comes with its own set of benefits and drawbacks, so it’s essential to understand your options and choose the one that best fits your needs and budget.