3 Things You Need to Know About Health Insurance Plans (and How to Pick the Right One)
Getting into the world of health insurance can be very very confusing as you try to understand exactly what health insurance is and how it can work for you and your needs. Of course as you look for all the health insurance plans, it can be very confusing to figure out what health insurance will work for you and your needs.
Thankfully, this article is here to help you figure out what you need for your health insurance, as well as what you need to pick a plan.
So let’s get going and get started with the four main types of insurance plans.
1. There Are Four Main Types of Health Insurance Plans: HMO, POS, PPO, and EPO
The four main types of health insurance are a preferred provider organization (PPO) plan, a health maintenance organization (HMO) plan, a health savings account (HSA)-qualified plan, and a point-of-service plan (POS), All of these plans are interesting and can be very helpful for your health, but which one of these is the best for you?
A point of service plan for your health is actually a hybrid of an HMO and a PPO health insurance plan. The HMO part of the POS allows you to have an in network physician to be their care provider, while with the PPO the patients can go outside the provider for their services. Still, whenever a patient ventures out of the network, they will still need to pay for most of the cost.
A Health maintenance organization has its own network of doctors, hospitals, and healthcare providers who are getting a certain payment for the services that they are providing for people. So if you are working with an HMO for insurance, you will benefit from a lower cost at an agreed upon payment, as well as a higher choice of physicians as long as they are in the network.
A Preferred provider organization plan allows you to see anyone you want without needing to get a referral from a primary care physician. It is a very popular plan for people and families as well, and the in network services would be covered at a higher benefit.
Finally, a health savings account qualified plan is a special account, where you can save money into your health plan and use the funds to pay for eligible health care expenses. It can also help you whenever you choose to save for retirement to pay general living expenses.
2. You Need To Know The Total Costs For Health Care
No matter what type of plan you end up picking, you are going to be paying a monthly bill to them every single month no matter if you use them. You are also paying the out of pocket cost including the deductible whenever you get your care.
Whether you are constantly seeking medical care or simply paying the month to month cost every single month, you need to keep these costs into account whenever you are selecting your plan, or if you need to start choosing employer health insurance.
3. You Have To Pay A Health Insurance Penalty If You Don’t Have A Plan
If you think you can get away without making these monthly payments, then think again. If you don’t have qualifying health coverage for a full year you will need to pay a tax penalty. The penalty amount is either 2.5% of the gross family household income or $695 per individual and $347.50 per child; you pay the greater amount. The penalty will grow over time, plus you will need to pay for all of your health insurance yourself without coverage.
Know Before You Buy
You might feel that you should buy your health insurance right away or should just take the cheapest or the best option, but you need to ensure that you are getting the best options for your needs.
Take a look at what type of health insurance you need, and also what providers you want to get your insurance from. Even picking one of the four types of plans over the others is a good start to get you started, and then you can make your purchase.