Types of Health Insurance Plans

Selecting the type of plan may be the most important decision you will make during the application process. The following defines the plan types and includes some considerations for each: 

PPO (Preferred Provider Organization)

A network of health care providers that have agreed to provide medical services to a health plan's members at negotiated costs. PPO members typically make their own decisions about their health care rather than going through a primary care physician like HMO member.

The cost to use physicians within the PPO network tends to be less than using a non-network provider.

If you plan frequent travel to another state, check to see if your PPO network exists in that state.

HMO (Health Maintenance Organization)

Prepaid health plans in which you pay a monthly premium and the HMO covers your cost of care to see doctors within their network at pre-negotiated rates.

You must choose a primary care physician who coordinates all of your care and makes referrals to any specialists you might need.

If you are an HMO member and you do not use the doctors, hospitals and clinics that participate in your plan's network, you will usually bear the cost of those medical services.

If you plan frequent travel, you could be without coverage while outside of your home area.

Indemnity

Traditional health insurance that usually covers a percentage of the cost of care (often 80%) after the consumer pays a deductible.

Those insured with indemnity coverage can choose any doctor or hospital for their care.

Indemnity typically offers greater freedom of doctor choice and more effective coverage for frequent travelers; however, the monthly premiums will be higher.

HSA (Health Savings Account)

A tax-advantaged personal savings account used in conjunction with a high deductible health policy.

Individuals can contribute money to this account on a pre-tax basis to set aside money for qualified medical care and expenses, including annual deductibles and copayments.

We strongly recommend selecting an HSA-enabled plan when selecting a high deductible policy.

If you have any concerns about which type of health insurance plan is right for you, it is in your best interest to schedule a personal consultation by calling Healthquotes at 1-800-345-0789 or completing our contact form .