Understand Your Options Before You Buy Health Insurance

Understand Your Options Before You Buy Health Insurance

Regardless of your current state of health and wellness, health insurance is important to have; you never know when you may get injured or sick and have to see a doctor. Whether you’re single or shopping for your whole family, it’s a good idea to understand your options before you buy health insurance. Some of the plans can be a bit confusing, and knowing what you’re getting can save you time and money down the road. Types of Health Insurance Policies HMO (Health Maintenance Organization) – With an HMO policy, you have to stay in-network (except in emergencies) to be covered by your healthcare provider, and specialists/procedures will require a referral from your primary care physician (PCP). This type of plan is excellent for someone who wants lower out-of-pocket costs and likes to have their PCP coordinate their care. PPO (Preferred Provider Organization) – With a PPO, you’re not restricted to in-network physicians, however those who are out-of-network are more expensive to see, and referrals are not required to see a specialist. These plans are great for people who like to see specialists and want more options regarding their PCP. EPO (Exclusive Provider Organization) – An EPO works like an HMO when it comes to your PCP, but like a PPO when it comes to specialists. These plans work well for people who are looking for lower costs but no referral required for specialist care. POS (Point of Service Plan) – These plans require you to obtain a referral to see an out-of-network provider as your PCP. In-network care is less expensive, and referrals are required for specialists and procedures. The plan works for...
The Most Affordable Health Insurance May Not Have the Lowest Premium

The Most Affordable Health Insurance May Not Have the Lowest Premium

There are a lot of things you can judge by their price and be right most of the time. It’s highly likely that paying $40 for a prime cut of meat will yield a better steak than the $7.99 variety you can buy at a low-end chain restaurant. When you buy health insurance though, the price tag isn’t always as telling. Knowing how much a health plan is going to cost right off the bat is important, but the answer isn’t always as cut and dry as one might expect. You need to take your current health needs and financial situation into account before you can make an informed choice. Choosing a high-deductible plan means that your premiums will be lower, but the out-of-pocket cost you pay if you have to file a claim is higher. Plans like this work well for people who are not only in good health currently, but have a history of it. Of course, a fair amount of luck is involved in everyone’s life, and it’s impossible to know when an accident will occur. Nonetheless, provided your work and home life are relatively low-risk, a plan with a higher deductible may be your best option financially. On the other side of that coin are the low-deductible plans. The lower your deductible, the higher your premium, but you’ll ultimately pay much less out-of-pocket when you have to file a claim. Again, whether a plan with a higher premium but lower deductible will work best for you or not will depend a great deal upon the circumstances surrounding your day-to-day life. For example, if you have...