Different Options for Health Insurance
Having health insurance is a necessity, that's clear. But what sort of health insurance to have, that's not so clear. There are a variety of different plan types, with names that don't tell you too much about how they work. Here's a basic rundown, in order of most to least expensive:
Fee-for-Service Plans. These provide the most freedom of choice, but you pay the highest premiums. You can see any doctor you like, and the insurance pays a fixed percentage of the costs, up to 100%
Preferred-Provider Organizations (PPO). Certain providers contract with the insurer to provide services at a discounted rate. You can choose anyone on this list, and the costs will be fully covered. If you see a doctor who is not on this list, the PPO will pay some percentage, usually 30-65%.
Health Maintenance Organizations (HMO). These are similar to PPO Plans, but there is no coverage for doctors who are not on the list. These have the lowest premiums of the three.
Most people opt for a PPO or HMO plan, as fee-for-service premiums can be exorbitant. But either of these options means that seeing a doctor who is not part of the insurance network will be expensive. Therefore, you should find out which HMO and PPO plans include your current physicians; most doctors are contracted with several of these plans, so there's a good chance you can find one that will allow you to stay with some of your current doctors. However, if you see specialists, you will likely find that one or more is not on the same plans as the others. In these cases, start planning for the changeover early, so that you do not miss any appointments or treatments.