Types of Individual and Family Health Insurance Plans - Choosing the Best Option
Apr 25th, 2011 Susan Hart
Many people are turning to private insurance companies to meet their medical insurance needs. Often, employers are unable to offer group insurance or the rising unemployment rate has forced people to find their own insurance. There are generally three categories of health insurance when looking for an individual family plan. The three types are HMOs (Health Management Organization), PPOs (Preferred Provider Organization), and High Deductible Plans combined with HSA (Health Savings Account). All of the plans vary and it is necessary to research the pros and cons of each type to find the best plan to meet individual and family needs.
HMOs offer comprehensive coverage and tend to be the most affordable of the individual family plans. HMOs create a network of doctors, specialists, hospitals, and other providers. A person belonging to an HMO chooses a primary care provider. The doctor will be responsible for coordinating the person's care and deciding what treatment is and is not necessary. If the doctor determines the patient needs to see a specialist, one must be chosen from the HMO network. Many people prefer the low cost of HMOs, but others are skeptical of allowing one doctor to be responsible for possibly rejecting treatment that might be necessary.
PPOs are an individual and family plan that allows insured parties the freedom to see any doctor they choose. Like HMOs, PPOs have a group of providers in the network. If staying in the network of providers, medicals costs are very affordable. PPOs usually have a deductible that must be met before services are covered. Co-payments or coinsurance is another expense. Co-payments are small amounts due at the time of service. Coinsurance is a shared cost between the PPO and insured. An example is the PPO would pay 80 percent of the visit and the insured is left to pay the final 20 percent.
High deductible plans provide a lower premium with a high deductible. This individual family plan is best for people looking to cover only a catastrophic injury or illness. The plan combined with a HSA can be helpful for covering routine medical expenses. A HSA is a tax-free savings account where money is saved to cover any desired medical expenses. The savings can be used to pay the deductible or any other medical related expense. Any money not used at the end of the year is rolled over to be used the next year.About the Author:
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