Stop Overpaying For Your Health With These 5 Simple Major Medical Plans

The Affordable Care Act (‘Obamacare’), requires everyone to have major medical health insurance or pay a tax penalty if not. Major Health Plans come in various shapes and sizes, so you need to do your research to find which is most suitable for you.

Health Maintenance Organization (HMO) Plans

These are one of the most popular types of plans. With them, you have to choose a Primary Care Physician (PCP), who coordinates all of your care using a network of approved providers. It usually offers coverage for most types of preventive care, including specialist visits, but you won’t be able to use providers outside the network or treatment not approved by your PCP.

Costs can however, be lower with these plans, because the number of providers available are restricted and have to act within HMO guidelines. Access to treatment should also be quicker as pre-approval by the insurer is not required.

Preferred Provider Plans (PPO) Plans

You don’t have to have a PCP under these plans and you or your family can see any health care provider in their network, without a referral. Small co-payment fees are charged for each visit, but you have greater freedom to manage your own care. Those who visit a specialist regularly usually prefer this type of insurance.

Point of Service Plans (POS)

This is a hybrid of HMOs and PPOs, so you have to select a PCP for check-ups and referrals, but can use providers outside of the network if you are willing to pay extra, so it is a more versatile plan.

Exclusive Provider Organization (EPO) Plans

EPO Plans are generally cheaper than HMO or PPO plans and again, you have access to the health care providers within the EPO network, including specialists. Any provider out side of the network isn’t covered, but this may suit individuals who don’t think they will need a lot of medical care and want a cheaper option.

High Deductible Health Plan (HDHP) Plans

Premiums are reduced with HDHP Plans, as you agree to cover an amount (usually $1500) towards each treatment before your insurer has to pay anything. Again they are suitable for people who don’t anticipate needing a lot of medical care and who want to keep the premiums down. They can also be used with a Health Savings Plan that allows you to continue contributing to your Health Savings Account, which is useful for any top ups needed.