No matter your age, no matter your income, there is a lot of variables that go into medical insurance. With health risks always being impossible to predict, you need to make a solid choice and quick.
There are many types of medical insurance. Knowing what each one can provide can help you make an informed choice.
Go into the decision with a proper understanding with this rundown of the 5 major types of medical insurance.
1. Health Management Organizations (HMO)
The basic idea of HMOs is the affordability at the cost of choices. HMOs are groups of doctors, specialists, and even hospitals that bond together to cover insurance costs.
This means that joining an HMO will often mean you have access to everyone within the HMO, but no one outside of it. This can cut you off from a favored doctor or specialist, so do your research on who is in your available HMOs.
2. Preferred Provider Organization (PPO)
PPOs are often the type of medical insurance offered by your employer. This works as a type of reverse HMO. Instead of the medical professionals together, they join in on whatever grouping your employer participates in.
This can give a surprising amount of freedom, as many doctors apply to PPOs to get as wide a customer base as possible.
Many end up in PPOs due to employer healthcare being their best option.
3. Exclusive Provider Organization (EPO)
An EPO is a middle ground between the more expensive PPO and the cheaper HMO. What distinguishes it is the freedom to look for medical providers no matter if they are out of network.
If you want a bit more freedom over HMOs and are willing to pay for it, this is a solid solution.
4. Point of Service Plan (POS)
POS insurance plans often rely on a referral method through your doctor. This allows them to get you in with those attached to this program.
While this leaves you at the mercy of your doctor’s choices. If you have a solid doctor and patient relationship, this can be a blessing in disguise, as it can save you quite a bit of money while going to the specialists you trust through your doctor.
5. Catastrophic Coverage
Catastrophic coverage is a special type of insurance. Instead of covering basic health checkups and any preventative care, this type of insurance is for emergencies only.
Because of the heavy restriction, it is often the cheapest in regards to premiums and basic costs. The trick is that the deductible can rocket when you need it most.
Because of this small overall coverage and the potential pitfalls of large deductibles, this is often an emergency version of coverage. Take this only when you need the bare minimums and can only afford them as well.
The Types of Medical Insurance for You
Choosing from the different types of medical insurance depends on your needs at the moment, your income going forward, and how far you want to plan.
Still uncertain? There is a lot to talk about, so talking out the details with a professional may help. We here at FutureWise are eager to answer all your questions. Contact us today for more information!