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Why Types of Health Insurance Exist?
When individuals are given the option of selecting the health insurance that they want to have, they have several options to choose from. Included in the variety of health insurance coverage types are POS plans, PPO's, HMO's and fee for service plans. Each is different in the extent and type of coverage that they provide, as well as in the fees that they charge.
The most traditional type of health care plan available is known as a fee for service plan. In this type of health insurance coverage, the insurance company pays the fees that the insured person acquires during a visit to a doctor or hospital. The insured individual can choose the particular doctor or hospital. In terms of fees, the insured individual pays a premium, and the insurance company pays the rest.
HMO's, which are available from Houston to Boston, are essentially prepaid health plans. Members typically pay a monthly premium, and the HMO covers the policyholder and his or her family. One aspect of an HMO that is different from a pay for service plan is the fact that an HMO typically decides what doctor or hospital the insured individual can visit. The paperwork is also minimal in an HMO.
POS insurance allows members some freedom to go outside of the network in order to receive services and medical attention. Typically, the insurance covers most of the bill associated with a medical visit, even if the visit took place with a doctor that was not part of the original network, however the visit outside of the network must be approved by an in-network doctor.
The most popular form of health insurance is known as a PPO. A PPO is a combination of an HMO and a pay for service organization. People in Houston who are looking for a plan that will give them the freedom of a pay for services plan, with the ease of use associated with an HMO, typically choose to obtain PPO coverage. A PPO features little to no paperwork like an HMO, but still allows members to choose their own doctor or hospital, be it in Houston or anywhere else in the country.
