A Novice Guide To Health Insurance

Many people forgo health insurance because the think it is to expensive. However, getting sick can cost much more than the monthly premiums. A typical day in the hospital can cost about $500-$1000. Without health insurance these costs would have to be paid out of pocket. It can be difficult to choose the right coverage. Here are three types of coverage that may help you make a choice to suit you.

Health Maintenance Organization

HMO has a great deal of hype associated with it. An HMO is a plan that works with a certain group of hospitals and doctors. HMO plans cover a variety of health services like dental and eye care. It assigns a primary physician and you must get referrals in cases where the care can’t be provided by that doctor. The advantage of HMO is inexpensive office visits and prescription medicine co-pays. There will be little or no deductible for hospital stays. Relying on your provider, you must not have e per-existing condition. The disadvantage of HMO is your choice of doctors and hospitals is limited.

Preferred Provider Organization

A Preferred Provider Organization works somewhat similar to HMO. The primary difference is you don’t have to choose a primary health care provider. In addition, you don’t have to be concerned with referrals, the choice of doctors and hospitals is greater, and there are no deductibles or limited deductibles. The only disadvantage is out of network services will be higher.

Point of Service

Point of Service works almost the same as HMO in that you choose a primary health care provider. The main difference is you can choose a treatment out of the network if you are willing to pay higher costs. Another advantage is you don’t have to use the referrals given by your doctor.

Indemnity Plans

Indemnity plans, or fee per service plans, pay for each service. For example, if you go to the emergency room and they perform an ultrasound,the hospital must submit a claim to the insurance provider. The disadvantage is this plan can be costly due to convenience.

Health insurance is something that shouldn’t be neglected. Life is unpredictable. No matter how healthy you are, you can get sick anytime. Paying monthly premiums is a far better solution than paying out of pocket. If you still aren’t sure which type of health insurance is right for you, an insurance broker can help you find a plan to suit your needs.