Types of Health Insurance You Should Know

Types of Health Insurance

  When choosing health insurance, whether you are an individual looking for coverage for yourself and your family or the owner of a small business, there are options available to you. By comprehending the various forms of health insurance that are accessible, you can choose the plan that best suits your coverage needs and financial situation. Here are some health insurance plans available in the marketplace;
  1.       Exclusive Provider Organizations (EPOs)
  2.       Point-Of-Service (POS) Plans
  3.       Health Maintenance Organizations (HMOs)
  4.       Preferred Provider Organizations (PPOs)
If you’re uncertain about which health insurance plans are most suitable for your needs, here’s a broad overview of the different types of health plans.

What Is an Exclusive Provider Organization (EPO)?

This is a health insurance plan that only covers services when using healthcare providers within the plan’s network (excluding emergencies).

What Is a Point of Service (POS) Plan?

Point of service is a health insurance plan where lower costs are incurred when utilizing healthcare providers within the plan’s network. To see a specialist, a referral from a primary care doctor is necessary.

What Is a Health Maintenance Organization (Hmo)?

HMO is a health insurance plan that typically restricts coverage to healthcare providers associated with the HMO. Out-of-network care is usually not covered, except in an emergency. Eligibility for coverage may require living or working in the HMO’s service area. HMOs often emphasize on preventative care and wellness.

What is a Preferred Provider Organization (PPO)?

PPO is a type of health insurance plan where reduced costs are incurred for utilizing providers within the network. Healthcare providers outside of the network can be used without a referral, but at an additional cost. NOTE: In another article, we will dive into the pros and cons of each health insurance plan.  

The Bottom Line

Before you purchase a health insurance plan, you need to fully understand the different types of plans available and how they work.