subject: How To Choose The Right Major Medical Policy [print this page] Lots of people get frustrated when they need to buy a family health insurance plan. The market is actually pretty crowded with lots of different companies and plans, so it is difficult to decide which one will be the best plan for an individual or family. Take a few minutes to educate yourself about some of the most popular types of major medical plans to help you decide.
Let me explain the basics of some common types of major medical insurance. That way, it will be much easier to decide bettween HSA vs. PPO plans, or between HMO and indemnity plans. Your own right choice of the best health insurance will depend upon a lot of different things. A few of these things are your budget, the area you live in, and how you like to access medical services for you and your family.
PPO plans are very popular today. You get a plan network. This network will include doctors, hospitals, and other medical service providers. The network medical providers have agreed to abide by network regulations. This agreement should help you and your insurer manage costs. If you use the network providers, you will get the maximum benefits out of your policy. You can always find a provider outside of the network too. If you do that, you will probably get lower benefits though. In general, this rule is lifted for emergencies and with prior insurance company approval.
HMO plans are much stricter. You almost always have to use one of the network providers in order to be covered. Again, there may be exceptions for emergencies or by prior approval. In return for much stricter controls, your insurer can manage costs better. In general, you may find lower out of pocket costs if you choose an HMO.
And HSA plan works with a high deductible major medical plan and a health savings account. You have to pay your medical insurance premiums, but you must also make payments to the savings account. The money is yours, and you can use it to help pay for your out of pocket costs. If you do not use up your money, it will roll over from year to year. Of course, you can also deduct qualified savings into your HSA.
Have you decided which plan is best for you yet? An HMO may be very strict, but may also help you save money. A PPO plan has some advantages of an HMO, but is more flexible. An HSA plan is good for people who like to control their health care spending, and who can benefit from a tax deduction. Hopefully, this information can help you make a good decision so you will be satisfied with your medical plan.
