Carefully Selecting a Health Policy

Choosing your health insurance must be done carefully. There are 3 different types of plans available, each offering and covering different services. Knowing and understanding these different types will allow you to purchase a plan suited perfectly for you.

The first type of health insurance is an HMO. Health Maintenance Organizations are type of insurance plan that restrict the types of doctors that you see and require referrals for specialist visits. HMO’s also will only allow you to receive services that are within their network. An HMO is a good option if your health care provider(s) are already part of the plan.

A PPO or Prefered Provider Organization is similar to an HMO but your choice of providers is wider. You do not have to seek a referral to visit specialists under this plan. If you choose a doctor or provider that is not in the network you will still have coverage but at a lower rate. This is the optimal insurance coverage.

Catastrophic Health Plans are the final choice. These plans are good for emergency type situations only and even then do not cover much. They have a very high deductible and offer little or no coverage for everyday medical needs. These plans are only recommended if you are in perfect health and are willing to take the risk of the high deductible. These plans are relatively cheap, but like with anything else, you will get what you paid for.

By understanding each of these plans you will be able to make an informed decision on what type of policy to purchase.