Health Spas Guide

The health insurance market offers lots of choices these days. Choices are great because individual and family health needs are diverse. However, with so many choices, it can be hard to understand which plan will be the best one for you and your family. Let me try to explain the most common health plans in simple language.

Preferred Provider Organizations (PPO) are probably the most common type of plan. The name refers to a network of medical service providers which which the company prefers that you use. In return, you will get the lowest cost and most coverage inside of this network. However, you will still be covered if you choose a provider outside of the network. In most cases, the insurer will make an exception for emergencies or in the rare case where you need a type of medical care that is not included in the network. If you need an outside provider, you should get the procedure approved before getting the service if it is possible. PPO plans offer cost savings and flexibility.

Health Maintenance Organizations (HMO )plans are similar to PPO plans because they include a network. However, the rules are more restrictive because most of the time services will not be covered at all outside of the network. As with PPO plans, emergencies and cases where there is no network provider may be covered outside of the network. Again, if possible, these exceptions should be approved ahead of time. HMO plans can be restrictive, but provide a large coverage benefit.

Heath Savings Account (HSA) plans are high deductible health insurance policies that work with a savings account. The savings account allows tax deductible contributions, though the government imposes limits for each year. And it can be used for a variety of medical services, like dental and vision, which are not covered by some medical plans. Any unused money rolls over until the next year. In addition, unused money can be withdrawn at retirement without a tax penalty. HSA plans are good options for disciplined savers who want control over their health care dollars.

Specified benefit plans provide specified benefit amounts for covered benefits. For instance, a benefit amount of $1200 might be allowed for a compound fracture, or $50 might be allowed for a visit to a primary care providers. Sometimes these plans are called mini-medical or limited benefit plans. They usually do not provide the most complete coverage, but may have affordable premiums and allow applicants with health conditions that the other major medical plans will not accept.

By: Marilyn Katz