Health insurance policies provide a safety net for when these accidents and emergencies occur.
The two main types of health insurance are private health government and government health insurance.
- Private health insurance policies are those provided by non-government agencies.
- Government health insurance policies are those subsidized by the government in exchange for a premium.
However, there are other types of health insurance, depending on how providers administer their policies. Below are the different kinds of health insurance:
- Managed-care plans are those provided by insurers connected to other healthcare providers. This provides policyholders with lower costs for medical care. However, penalties and additional fees apply to out-of-network health service providers.
- Health maintenance organizations (HMOs) are organizations that directly give medical care to policyholders. HMOs usually offer the cheapest health insurance policies.
- An indemnity or fee-for-service plans refer to policies that cover treatment among all healthcare providers. This allows the insured to choose their preferred place of treatment.
- Preferred provider organizations (PPOs), like indemnity plans, allow the policyholders to choose their treatment place. PPOs provide policyholders with lower costs, even for out-of-network providers.
- Point-of-service (POS) plans refer to the mix of an HMO and PPO. Policyholders have three options:
- To receive treatment from the provider’s network; or
- To receive treatment from non-network providers.
The Importance of Choosing the Right Insurance Plan
Many health insurance policies cater to different needs and payment capacities. Plans give policyholders an idea of the treatment they’ll need and the amount they’re going to spend.
Health Savings Accounts are a combination of different plans offered by the government. These plans can be used to extend existing policies to cater to other types of treatments. Chronic conditions like diabetes, however, might incur higher costs. This is due to the expensive cost of health maintenance.
HMOs offer high deductibles: while premiums cost less, policyholders pay the full price of necessary treatment.
Emergencies can occur at any time and any place. Preparing for these emergencies can help, especially when one cannot draw out money directly from the pocket.
Different types of health insurance policies exist to give customers the option to choose based on their needs and ability to pay.
At Roper Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (828) 697-6709. You can also request a free quote by CLICKING HERE.