Affordable Health Insurance Rates: HMOs, POSs and PPOs
Today, having affordable health insurance is not a luxury that most can avoid. Ensuring that you can care for the health of yourself and your loved ones is a necessity.
However, comparing health insurance plans can seem daunting. How can you tell which plan is best for you and your family?
Will you be able to keep your same physicians, or will you need to switch to a new health care provider? Will you need to obtain a referral before you can visit a specialist? What is the difference between an HMO, a POS and a PPO?
There are many questions one must ask before choosing a health insurance plan. Fortunately, there are some fundamental components that you can compare to assist in making this important decision.
Group versus Individual Health Insurance
There are two primary types of health insurance that one can acquire. The first is group health insurance, and is most often recognized as the health insurance plan offered by one's employer. With a group health insurance plan, you often do not need to complete a health questionnaire or undergo a medical exam in order to be approved. In addition, most group health insurance plans do not deny coverage for preexisting conditions.
However, not everyone has access to a group health insurance plan through his or her employer, or the health insurance plan offered by the employer might not be ideal for the individual. In such a case, you can obtain coverage through an individual health insurance plan.
When applying for individual health insurance, you likely will need to complete a health questionnaire and coverage for preexisting conditions could be denied. However, there are many health insurance companies out there, and in such a competitive market, one is sure to find an affordable plan that is just right.
HMOs, POSs and PPOs
When it comes to health insurance plans, there are three primary organizational structures: an HMO, a POS and a PPO.
An HMO, or health maintenance organization, is able to provide affordable comprehensive health care at predetermined discounted rate by contracting with specific health care providers and by covering a large number of members.
In many cases, HMO members are able to visit only those physicians who are contracted with the HMO. In addition, HMOs often limit coverage of any treatments deemed as unnecessary. While these limitations might feel restrictive to a member at times, these practices are what help the HMO keep their overall health care costs down and membership rates low.
A POS, or point of service plan, also offers its members discounted health care costs by contracted with physicians. Members of a POS are able to see a physician outside of this network, but they will be able to take advantage of the plan's discounted fees by sticking with providers within the POS's network. Additionally, POS members do need to obtain a referral from their POS primary care physician before seeing a specialist.
A PPO, or preferred provider organization, also contacts with a group of physicians in order to provide its members with predetermined rates and discounts. Like a POS, PPO plans do allow members to visit doctors outside of the plan's network, but again, members can save money by staying within the plan's network. A key difference between a PPO and an HMO or PPO is referrals - PPO members are able to see specialists without obtaining a referral from their primary care specialist firs.
Compare as Many Plans as Possible
To ensure that you find the best health insurance plan for you and your family, you should obtain and compare as many health insurance quotes as you can. To assist you in your search, just complete our brief online form and you will automatically receive several affordable health insurance quotes that you can compare.
