We all know how important health insurance is, but as there are more and more different kinds, it's getting harder and harder to choose the one that's best for you and your family. Let's take a look at the most common types of policies to help you figure out which one might be best for you.
HMOs tend to get a lot of attention, so let's look at that one first. A health maintenance organisation, or HMO, is a plan that only works with a certain group of doctors and hospitals. You choose a primary care doctor, and if you need care that doctor can't give, you have to get a referral. This kind of plan has benefits like lower costs for office visits and co-payments for prescription drugs. Also, most hospital stays will have no or only a small amount of deductible costs. Depending on your plan, there may also be no limits because of pre-existing conditions. It's also important to know that if you have an HMO, you won't be able to go to any doctor or hospital you want, and you won't be able to get services covered that aren't in their network.
A PPO, or Preferred Provider Organization, works a lot like an HMO. The biggest difference is that you don't have to choose a primary care doctor. With an HMO, you may be able to choose your own doctor without having to worry about a referral. You may also be able to choose from a larger group of doctors. Services outside of the network may also be covered, but they will cost more than services inside the network.
A POS, which stands for "Point of Service," is also like an HMO in that you choose your primary care doctor. The main difference is that you can choose treatment outside of your network if you are willing to pay more out of pocket.
Another choice is a policy called "traditional coverage." This type of policy will have deductibles and a higher monthly premium. Also, you will usually have to pay for services out of your own pocket first and then fill out forms to get your money back.
You might also want to look into different types of disability plans, which cover a portion of your income if you get sick or hurt and can't work for a while. A short-term disability plan will pay benefits from the first day of an accident or the eighth day of an illness up to 26 weeks. This kind of plan will usually cover 66 percent of your weekly income.
After your short-term coverage ends, your long-term coverage will begin. Depending on the policy you choose, the length of time you are covered will vary. Some policies only cover you for up to two years, while others cover you until you're 65 years old.
