Since health insurance premiums have to be carefully calculated into your monthly budget , you need to fully educate yourself when it comes to obtaining a health insurance plan. Below is a partial list of the most widely purchased health plans offered, and the different types of people requiring specific coverage, for their individual needs.
PPO – This is an abbreviation for Preferred Provider Organization Plan. This particular Health Care Plan works through a network of medical providers who offer their services, from individual doctors and offices, to hospital care.
This plan offers the highest coverage possible, assuming you’re trying to locate medical services within the network, although some providers, not in the network, may be covered as well.
There’s a balance between your flexibility and the management of cost, from the health insurance company itself. This type of Health Insurance is very popular because the company is responsible for managing costs, while leaving you, and yours, with lots of flexibility and options. A lot of people feel this is much more balanced.
HMO, or Health Maintenance Organization coverage was created, supposedly to deal with prevention. This particular plan also has a network of medical providers, and tends to cover only those people being given services from providers that are in the network. While many people are satisfied with their HMOs, other take issue with the ever rising cost and the frequent limitations placed on care by the provider. HMOs were very popular in the 1990s, but seem to be phasing out in the twenty first century
HAS Plan – The Health Savings Accounts contains two different parts, a tax advantaged savings account, and a high deductible major medical plan, generally a PPO. The tax advantage savings part can actually earn you interest. You can use this particular account for most medical expenses and services, even in areas not traditionally in that category, including many over the counter medications, as well as dental and vision care, which if purchased through this plan are now tax deductible
Your HSA money still left in the account at the end of the year automatically rolls over to the next year. This is totally risk- free. The money is yours.
The second part of the HSA Plan is its high deductible coverage. The lower cost of a higher deductible policy premium is what enables you to keep some of the money in the savings account.
The HSA works particularly well for those wanting control of how their medical expenses are spent. Make sure you are the type person that is strict and very disciplined about saving your money. It helps to be the type of person who really sticks to a budget.
Decide based on your knowledge and research, the way you want your money managed, and make sure it’s affordable to you and your family…while taking care of all of your health care needs.
Remember, you are not alone. Your agent is schooled and licensed to understand and explain all options to you and to offer a professional opinion about what type of health insurance plan best suits your needs and budget.
About the author of this article:
tamarin martin is the owner and senior agent at l.a. affordable health insurance. her goal is to provide the most comprehensive and inexpensive health insurance available to residents of los angeles. californians should visit her site for a free instant online health quote
