| Lots of Americans need to buy health insurance, | | | | circumstances, medical services may also be |
| and when they do, they have one question. They | | | | covered outside the network if they are not |
| ask what the best health insurance plan is for | | | | available inside the network. It is very important |
| their family. We actually have a lot more options | | | | to understand the policy before the need arises. |
| than we did a few years ago, and that question is | | | | And non-emergency services must be authorized |
| not easy to answer. | | | | before hand. |
| In fact, the only way to find the best medical plan | | | | A newer type of coverage is called an HSA |
| is to determine what we expect from that plan, | | | | (Health Savings Account). Now this coverage has |
| and also to take a good look at what we can | | | | two parts. One part is a higher deductible major |
| afford. To help you answer that question for | | | | medical insurance policy. The other part is a |
| yourself, and for your own family, lets look at the | | | | special savings account. |
| common types of policies on the market. | | | | The idea here, is that the money in the savings |
| PPO (Preferred Provider Organizations) are very | | | | account will help cover the higher deductible. |
| common these days, both on the individual and | | | | Contributions to these accounts, within limits, are |
| group benefit market. With a PPO, you will have a | | | | tax deductible and can be used for a variety of |
| network of medical providers in your area. If you | | | | medical services. Some of these services, like |
| use that network, the insurance company will | | | | dental or vision, may not even be covered by the |
| provide the most coverage. However, you are | | | | medical plan. All of the savings roll over from year |
| free to leave the network, but you must accept | | | | to year, so you do not risk losing money you do |
| a lower coverage level. This plan is probably | | | | not spend. And the money can be withdrawn at |
| popular because it allows a consumer the most | | | | retirement age without a penalty. |
| flexibility, while still providing good coverage. | | | | It may sound like I am highly biased towards HSA |
| HMO plans (Health Maintenance Organizations), on | | | | plans. They do have advantages, but they only |
| the other hand, will only cover network provided | | | | work for disciplined savers. I have known many |
| medical services. Since only services from medical | | | | people who switched from the HSA to another |
| providers who contract with the network are | | | | plan because they did not ever get around to |
| covered, the HMO has more control over medical | | | | making the contributions, and so the plan just did |
| costs and services. These plans usually provide | | | | not work out for them. |
| the highest level of coverage, but also have the | | | | Beyond these common plans, are indemnity plans |
| most restrictions. | | | | and specified benefit plans. These pay a certain |
| It is important to note a couple of exceptions to | | | | amount for different medical services according |
| the network coverage. In general, any emergency | | | | to a benefit schedule. Before you purchase a plan |
| will be covered if it is not possible to seek | | | | like this, you really need to make sure the |
| network medical coverage. In some | | | | schedule is in line with current medical costs. |