| By :
Patricia Strasser
There are five general types of health insurance plans. Each have their pros and cons. Health insurance agents may use Health Insurance Leads to determine what type of health insurance plan is suitable to a customer. But, as a smart insurance buyer, you need to do your part and understand what the types are before making a decision. Health Maintenance Organization (HMO) One of the most common types of health insurance today is called an HMO, also known as a Health Maintenance Organization. Most U.S. workers have an HMO because that is the only thing their company offers. HMOs are the least costly kind of insurance plan, covering things like preventive care, dental care, and eye care. A broad network of doctors, specialists and healthcare facilities are provided to the policyholders of HMO. To direct all healthcare services and medical needs when needed, a primary-care physician works as a gatekeeper and is selected by policyholders. An HMO covers expenses only when the patient's primary care doctor refers him or her to a medical service or a specialist. Being the most restrictive type of healthcare plan, is the downside of an HMO plan. Sometimes a plan requires that the patient pay a co-pay when visiting a doctor. Preferred Provider Organizations (PPOs) A PPO does not require you to get referrals. However, cost-wise it is better if the healthcare services and specialists selected by the policyholder are within the PPO's own prescribed network. It is more expensive to source service and facilities from outside as it may require you to pay 20% of the total cost in advance and the remaining 80% is covered by the PPO. Exclusive Provider Organization (EPO) Exclusive Provider Organizations, or EPOs, are nearly similar to PPOs, however have a distinctly smaller network. EPOs are not similar to PPOs because the former do not provide insurance cover for the services rendered by those specialists which are not listed in their own network. Point of service (POS) Point of service plans are similar to PPOs because you are given a primary care doctor. These will allow the insured to go to specialists at their own discretion. Fee for service (FFS) Fee for services is the least restrictive type of health insurance plan and offers a wider range of choices of medical specialists and facilities. If you have a policy that is fee for service based you can choose the health care provider and facility you want. First, the insured must pay the deductible amount (a preset number), then the insurance provider can pay for the services. Even when insured you will have to pay 20% out of your pocket for every service. The maximum amounts are laid out for you in your insurance contract. Unfailingly make a complete overview of your coverage needs and your financial possibilities when deciding on a health insurance plan. Strive to balance the before mentioned aspects to get the plan best fitted to your situation.
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