The Most Common Types of Health Plans

Choosing a health care plan is important and can be an arduous task if you don't know what you are looking for. To burden the task, complete research by looking online, and comparing different coverage and prices. From there you can confidently choose the right kind of health plan that is right for you. Start by examining the most common types of health care plans.

• Traditional- The insured is able to choose their own health care provider, as long as the provider accepts the insurance. A drawback to having a traditional plan is the insured may have to pay high deductibles and co-pays.


• HMO (health maintenance organization)- The insured is able to choose their own primary care provider who will see them for all routine work. If the insured needs a specialist, then the primary care provider is the person that refers them. The insured must obtain a signed referral or the expenses will not be covered.


• POS (Point of service)- The insured person is able to choose outside their insurance network. If the person needs a specialist, then their primary care provider refers them or they have the option of referring themselves to a specialist. The drawback to a POS plan is the insured person may have to pay some out-of-pocket costs and charges. Most expenses are due as services are rendered and the member is then reimbursed.


• PPO (Preferred provider service)- The insured person does not have the ability to choose a primary care provider. In emergency situations the insured person will be covered financially if their plan doesn't cover the emergency costs.  Drawbacks to a PPO plan are there are high out-of-pocket costs and lower benefits.

Finally, when you have gathered all of the information about different health care plans, then you can compare the prices and benefits of each plan and from there you can make your final decision.