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Types of Health Insurance
If you go out in the market, you will find unlimited options of insurance plans. Though, there is nothing wrong with any kind of plan, yet all may not suit you equally. Situations do not remain constant all the time, so you may review your insurance plan on a regular basis to ascertain that you have all the benefits you require. Though budget is one of the main priorities in front of you, it should not be the only deciding factor. Following are listed all major types of insurance plans along with their merits and demerits.
- Traditional Indemnity
Merits
* The subscriber is given the freedom to choose health care provider he desires to
* It does not has much restrictions as compared to other schemes.
Demerits
* It is costly as compared to other plans.
- Health Maintenance Organization (HMO)
Merits
* It is more economical.
* Not much Paperwork is required.
Demerits
* You are allowed to consult a doctor within the HMO network.
*You need to be referred to the specialists by the general physicians, you cannot approach them directly.
- Preferred Provider Organization (PPO)
Merits
*If the physician the patient is visiting falls under the preferred provider network, you get incentives.
* You may also visit a physician not under the preferred provider network at a less payment.
Demerits
* Deductibles may be charged for some services such as hospitalizations and out-of-network.
* The cost are a bit higher.
- Point of Service Plan (POS)
Merits
* The insurer is free to move beyond the network.
Demerits
*If you do not take a refferal from your physician and treat yourself out of the network, your costs will be increased.
- Health Savings Account (HSA)
Merits
* The value of premium is low.
* The money is deposited into your account and can be used for undergoing any medical treatment.
Demerits
* The HSA is tied to the IRS Code
* If you take out money for other purposes, you will be charged tax upon that.
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