| We all understand the importance of health | | | | physicians that might be available with a |
| insurance; however, as the types of health | | | | HMO. Out of network services may also be |
| insurance continue to increase it is becoming | | | | covered; however, for a higher charge than in |
| more and more difficult to select the type of | | | | network services. |
| coverage that is best for you and your | | | | |
| family. To help you find out which type of | | | | A POS, or Point of Service, is also similar |
| policy might benefit you the most, let's take | | | | to a HMO in that you select a primary care |
| a look at the most common types of policies. | | | | physician. The difference is that you are |
| | | | free to choose out of network treatment if |
| There is usually a lot of hype regarding HMOs | | | | you're willing to pay a higher out of pocket |
| so let's look at that one first. A HMO is a | | | | cost. Â |
| health maintenance organization plan that | | | | |
| works with a specified group of doctors and | | | | Another option is what is known as a |
| hospitals within the network. A primary | | | | traditional coverage policy. This type of |
| healthcare physician is selected and you must | | | | policy will have a higher monthly premium as |
| obtain referrals for care that cannot be | | | | well as deductibles. In addition, you will |
| provided by that physician. The benefits of | | | | generally be required to pay for services out |
| this type of plan are lower office visit | | | | of your own pocket up front and then submit |
| costs and prescription drug co-pays. In | | | | claim reimbursement forms. |
| addition, there will typically be either no | | | | |
| or limited deductible costs for hospital | | | | You may also wish to consider various types |
| stays. Depending on your coverage, there may | | | | of disability plans, which cover a percentage |
| also be no pre-existing condition cause | | | | of your income in the event that you |
| limitations. It is also important to | | | | experience an illness or accident that |
| understand that your choice of doctors and | | | | prevents you from working for a period of |
| hospitals will be limited with a HMO and you | | | | time. A short term disability plan will |
| won't be able to have out of network services | | | | provide benefits from the first day of an |
| covered. | | | | accident or the eighth day of an illness up |
| | | | to 26 weeks. Generally, this type of plan |
| A PPO or Preferred Provider Organization | | | | will cover 66% of your weekly income. |
| works similar to a HMO; however, the major | | | | |
| difference is that you are not required to | | | | Long term disability will begin after short |
| select a primary care physician. In addition | | | | term coverage has expired and will provide |
| to the benefit of being free to choose your | | | | coverage for a variable term, depending on |
| own physician without worrying about a | | | | the policy you select. Some policies are |
| referral you also gain the benefit of limited | | | | limited to providing coverage up to two years |
| or no deductible costs for hospital stays as | | | | while others will cover you up to the age of |
| well as a possible larger selection of | | | | 65. |