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Types of Health Insurance

Types of Health Insurance Photo

©Depositphotos/gwolters

If there’s an insurance we should all invest in, that would be the health insurance. If you have this kind of insurance, you don’t have to deal with too much medical bills and expensive drug prescriptions. That is because such checkups and tests are supported by this kind of insurance.

Studies even showed that those who have type of insurance are most likely the people who have annual general checkups. But depending on what kind of insurance you have, you and your family may be covered by even more benefits. To give you more facts, here are the most common types of insurance.

Free for service

This is yet the most common health plan there is, not to mention the most used as well. With a free for service insurance, you have the freedom to choose your doctors and physicians as well as the hospitals that will take care of you. Unlike other insurances, you also have an opportunity of referring yourself to any health care specialist you want.

On the downside, free for service also involves more out-of-the-pocket expenditures. There’s also a deductible cost ranging from $200-$2,500 which should be paid before the insurance company begins paying and insuring you.

Managed care

This kind of health plan has existed since the 1930′s. Unlike the free for service wherein you can choose your preferred medical experts, this managed care insurance was more of an arrangement plan. Such agreement is between the insurer and the selected group of health care providers. A formal procedure is done to ensure that only the best doctors and physicians will be picked.

PPO

A PPO or preferred provider organization is another kind of insurance that’s one step over the guided care border. This is linked to lower fees on arrangements with a group of doctors and other health care providers. A financial incentive is also given to the policy holders.

This plan also allows you to refer yourself to a doctor without asking for permission. However, that doctor should be a part of the arranged network or group. Nevertheless, you can still see outside doctors if you wish, but alongside that, you are entitled to pay the entire bill yourself.

Point of service

A point of service insurance or POS is quite similar to the PPO. The only catch though is that they’re the ones who’ll introduce you to the primary care physician. This insurance also allows you to choose out of network health care providers but will still let you obtain the same coverage. This is also known to cover more care services and it also offers health improvement services. Examples would be workshops on smoking and nutrition cessation.

Conclusion

Purchasing a health insurance is indeed important. However, you should keep in mind that gaining enough knowledge about it is more important than anything else. You should know your rights as well as the do’s and don’ts to ensure that you’re on the right track. There are many scams when it comes to health insurances and technically just any kind of insurance, thus it’s still best to do a research first.