Health Insurance
Nothing is more important than your health. Without health insurance, paying for medical treatment is extremely costly. Many families without health insurance are stuck paying off medical bills for the rest of their lives. That’s why it’s important to consider purchasing a health insurance policy from a reputable insurance provider.
What types of health insurance plans are available?
There are several types of health insurance plans available. The type of plan you choose depends on your specific needs and wants.
Basically, there are three major types of health insurance plans: Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), and Health Savings Account (HSA).
HMO
A Health Maintenance Organization, HMO, is a type of managed care organization (MCO) that provides health care plans characterized by lower costs than traditional health insurance plans. The HMO sets guidelines for doctors so there are limitations on the range of treatments available.
PPO
A Preferred Provider Organization, PPO, is a managed care organization of doctors, hospitals, and other health care providers. PPO plans generally cost more than HMO plans. However, they offer greater flexibility when choosing doctors and seeing specialists.
HSA
Health Savings Accounts, HSAs, are a fast growing option in health insurance. Funds contributed to the savings account are not subject to federal income taxes.
What are some common health insurance terms?
Understanding health insurance can be difficult. It helps to know some of the common terms you’ll run into when discussing health insurance plans with one of our agents. Below you’ll find definitions for some common terms.
Deductible—the amount of money you pay toward medical bills before your health insurance kicks in. For example, if your deductible is $1,000, and medical bills surpass that amount, your insurer pays the difference.
Co-pay—a specified amount you pay upfront when you visit a doctor or fill a prescription.
Coinsurance—the percentage of medical bills you pay after the deductible is met.
Contact us to learn more about health insurance.
