| Lots of Americans need to buy health | | | | is not possible to seek network medical |
| insurance, and when they do, they have one | | | | coverage. In some circumstances, medical |
| question. They ask what the best health | | | | services may also be covered outside the |
| insurance plan is for their family. We | | | | network if they are not available inside the |
| actually have a lot more options than we did | | | | network. It is very important to understand |
| a few years ago, and that question is not | | | | the policy before the need arises. And |
| easy to answer. | | | | non-emergency services must be authorized |
| | | | before hand. |
| In fact, the only way to find the best | | | | |
| medical plan is to determine what we expect | | | | A newer type of coverage is called an HSA |
| from that plan, and also to take a good look | | | | (Health Savings Account). Now this coverage |
| at what we can afford. To help you answer | | | | has two parts. One part is a higher |
| that question for yourself, and for your own | | | | deductible major medical insurance policy. |
| family, lets look at the common types of | | | | The other part is a special savings account. |
| policies on the market. | | | | |
| | | | The idea here, is that the money in the |
| PPO (Preferred Provider Organizations) are | | | | savings account will help cover the higher |
| very common these days, both on the | | | | deductible. Contributions to these accounts, |
| individual and group benefit market. With a | | | | within limits, are tax deductible and can be |
| PPO, you will have a network of medical | | | | used for a variety of medical services. Some |
| providers in your area. If you use that | | | | of these services, like dental or vision, may |
| network, the insurance company will provide | | | | not even be covered by the medical plan. All |
| the most coverage. However, you are free to | | | | of the savings roll over from year to year, |
| leave the network, but you must accept a | | | | so you do not risk losing money you do not |
| lower coverage level. This plan is probably | | | | 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 And the money can be withdrawn at |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 plans. They do have advantages, but they |
| HMO plans (Health Maintenance Organizations), | | | | only work for disciplined savers. I have |
| on the other hand, will only cover network | | | | known many people who switched from the HSA |
| provided medical services. Since only | | | | to another plan because they did not ever get |
| services from medical providers who contract | | | | around to making the contributions, and so |
| with the network are covered, the HMO has | | | | the plan just did not work out for them. |
| more control over medical costs and services. | | | | |
| These plans usually provide the highest level | | | | Beyond these common plans, are indemnity |
| of coverage, but also have the most | | | | plans and specified benefit plans. These pay |
| restrictions. | | | | a certain amount for different medical |
| | | | services according to a benefit schedule. |
| It is important to note a couple of | | | | Before you purchase a plan like this, you |
| exceptions to the network coverage. In | | | | really need to make sure the schedule is in |
| general, any emergency will be covered if it | | | | line with current medical costs. |