Health Insurance costs have gone through the roof in recent years, but finding an affordable health insurance plan may not be as hard as you think. Here are simple explanations of the four basic plans and you can save money on them.
Health Insurance Plans
There are four basic types of health insurance:
1. Indemnity - This is the most expensive plan. It allows you to choose your own doctor and hospital. It's the most flexible plan because it allows you to make your own decisions about your health care. You pay your bill after services are rendered and are then reimbursed by your insurance company.
2. Health Maintenance Organization (HMO) - This is the cheapest plan. It provides you with a network of doctors and hospitals chosen by your insurance company. You pay a monthly fee for this plan and all visits and prescriptions must be approved by your HMO.
3. Preferred Provider Organization (PPO) - This is the most popular plan. It's similar to an HMO, but you pay for medical care after it's received instead of paying a monthly fee. You also have the option of seeing out-of-network doctors. Visits within the network require a small fee, while out-of-network visits may require a deductible payment and a co-payment.
4. Point of Service (POS) Plan - This is more expensive than HMOs and PPOs but much cheaper than an idemnity plan. It's for people who want to have the option of choosing their own doctor and hospital or staying with a network doctor and hospital.
Choosing an Affordable Health Insurance Plan
The first thing you have to do is to figure out which health insurance plan is best for you.
If you want the most flexibility, then a POS plan is your best bet. If you want the cheapest plan and don't don't mind your doctors being chosen for you, then an HMO is what your looking for. If you want more freedom of choice than an HMO and are willing to pay a little more for your insurance, then a PPO is a good choice. And if you're a senior and want to supplement your Medicare insurance, then a Medicare supplement is what you need.
After you choose a plan, the best way to find the best rate is to go to an insurance comparison website where you can compare rates from a number of different companies. The better sites even have a chat feature where you can talk online with an insurance expert and get answers to your questions. (See link below.)
Visit http://www.LowerRateQuotes.com/health-insurance.html or click on the following link to get free health insurance plan quotes from top-rated companies in your area and see how much you can save. You can get more health insurance tips by checking out their "Articles" section.
The author, Brian Stevens, is a former insurance agent and financial consultant who has written numerous articles on affordable health insurance plans.
By Brian Stevens
Published: 4/2/2007
