What are the Four Kinds of Individual Health Insurance Plans?
By: Health Insurance
Submitted: 2009-12-07 10:30:54 | Word Count: 427
If one of these situations fit your reality – recent graduate, newlywed, early retiree, between jobs or disastisfied individual health insurance plan holder – then taking the time to learn more about individual health insurance plans will be of great benefit.
Most people, until recently, get their health insurance from their employer. But in today’s declining economic environment, many companies are eliminating or drastically reducing coverage by company-sponsored health insurance. Increasing numbers of people are seeking affordable private health insurance plans designed for individuals.
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Choosing an individual health plan isn’t only about getting the right coverage. It’s also about figuring out the costs and working with a health plan that makes financial sense for your individual situation. Individual health insurance can actually be fairly affordable.
The four most common types are HMO, PPO, HSA and FFS.HMOs (Health Maintenance Organization) – HMOs are one of the most affordable health plans available that offer comprehensive coverage. Most HMO networks consist of thousands of health care professionals. PPOs(Preferred Provider Organization) are an affordable health plan with an added benefit – you’ll have coverage with any health care provider. That means you can see any doctor or specialist you want. Health Savings Account (HSA) Plans consist of two parts: a high-deductible health plan and a Health Savings Account. The high-deductible plan provides catastrophic coverage and features low monthly premiums. The HSA is a tax-free savings account where you save money to pay routine medical expenses. Fee For Service (FFS) Plans are the traditional forms of health insurance. It works very simply – you pay upfront to get the health care you need, then you’re reimbursed for a percentage of the cost.
Getting your own health insurance prevents you from being dependent upon your employer and thereby keeps you from losing your health insurance if you leave your job. Individual health insurance is meant for single individuals, either self-employed or employed by a small company offering limited health insurance options.Review all the options and costs for the plans you are considering. Comparison shopping for health plans takes some time, but it is time well spent.
Discover more about individual health plans and how to choose affordable health plans in general at EasyToInsureME
