Understanding the Different Types of Health Insurance Plans: Which One is Right for You?

Health insurance is essential to your well-being and daily quality of life. The coverage included in the right policy could be crucial as you seek the medical services and products needed to manage illnesses, recover from injuries or otherwise maintain your wellness. But while the general purpose of health insurance may be apparent, you must also understand the various coverage options available, as policies can come in many forms with varying pros and cons.

Types of Health Insurance

When selecting your health insurance plan, you should be mindful of how various aspects of each type may align with your coverage needs. Familiarize yourself with the following common types of policies:

• Health maintenance organizations (HMOs)—These policies require you to select a primary care physician (PCP) responsible for managing your general health care. Your PCP can make referrals to specialists within your network, but out-of-network providers are typically not covered.

• Preferred provider organizations (PPOs)—The coverage offered by PPOs is typically more flexible than that which you’d have through an HMO. These plans do not include the selection of a PCP, and you do not need referrals to see specialists. Out-of-network providers may be accessible with a PPO, although you’ll usually need to pay more.

• Point of service (POS)—POS plans may often be seen as a hybrid between HMOs and PPOs. You’ll select a PCP as you would while having an HMO, and this person will be responsible for referring you to specialists. However, like PPOs, POS plans allow you to seek service out of network, albeit at greater costs.

• Exclusive provider organizations (EPOs)—These policies also combine elements of HMOs and PPOs. If you have this plan, you’ll need to establish a PCP and will be limited to care within your network other than during emergencies. However, you typically do not need a referral to seek care from a specialist.

In addition to selecting from various types of plans, you should also understand how where you get your coverage could be impactful. Shopping for an individual or family plan on the Health Insurance Marketplace could allow you to customize your coverage according to your needs. However, if you can get coverage through a group plan, such as one offered by your employer, you may enjoy lower rates.

Get the Right Coverage

Contact ISU-Atwood Agency today to learn about health insurance or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.