If you do not have medical insurance, or the appropriate level of coverage, a major medical emergency could leave you with nothing. In order to prevent this from happening to you it is important to know about the different types of medical insurance, so you can make sure that you have the coverage that best suits your needs and your current financial situation.
Most insurance plans are PPOs. PPO stands for Preferred Provider Organization. You will be limited to the doctors that your insurance company endorses. Depending on the size of your insurance company’s network and your geographical location, you might have your pick of many doctors or just a few. Your PPO plan will pay a large portion of the cost for your doctor’s visits and prescription. You will only have to pay a copay. Copay payments range from five dollars to around fifty dollars. If you have to have a surgery or an overnight stay in the hospital, your PPO will pay a set percentage of your total cost.
The more money you pay towards your healthcare premium each month, the more your insurance company will pay towards your medical expenses, and the less your co-pay will be. Insurance companies may or may not offer coverage for substance abuse or mental health expenses, but it depends on the company and the state in which you reside. The most important thing you should look into, if you are looking for a new insurance company is whether they will cover any pre-existing medical conditions that you may have.
Another type of medical insurance plan, which is a fairly new product that is being offered, is the High Deductible Health Plan (HDHP). With the HDHP you will establish a Health Savings Account or a Family Savings Account, with pre-tax income, that will be used to pay your medical expenses. Preventative treatment is typically covered by the HDHP plan, and you use the money in your account to pay for your other medical expenses, including doctor visits and prescription drugs. HDHP does not limit you to in network doctors or facilities, since you will be paying the costs yourself, however some HDHPs may have a small group of doctors that will give discounts to plan members.
Finally, the HMO, or Health Maintenance Organization is an insurance option for older adults. HMO plans vary widely by state. In all HMO plans, however, you will have to select a primary care provider. Before you receive any specialist treatment, you will have to go see your PCP. He or she will issue you a referral. Like a PPO, HMO plans operate using copays and coinsurance.