Different Types of Health Insurance Policies

Before shopping for health insurance consumers should become familiar with different insurance policies. Here are the major types of health insurance policies that consumers can choose from.

· Health Maintenance Organization Plans (HMOs) are the most affordable but also the least flexible. HMO policies require you to choose a primary care physician from your network, which is a list provided to you by the insurance company. If you want your medical services to be covered you have to see your primary care physician. Your doctor will refer you to a specialist if you need one, and once that specialist is referred than he becomes part of your network. Without that referral, you will have to pay for any medical expenses that occur out of your network.

· Preferred Provider Organization Plans (PPOs) are like HMO plans but will let you see doctors out of your network. Seeing a doctor out of your network is more expensive but allows you to be flexible without a referral from your doctor. This type of plan will also allow you to get a Health Savings Account which is great investment option and will cover health care costs.

· Point of Service Plans (POSs) are a combination of PPOs and HMOs. This type of policy makes you choose a primary care physician, but will let you see other doctors and health care specialists outside of your insurance companies network.

· Fee for Service Plans are the most expensive but provides the most freedom to choose who you want to see. This type of plan allows you to see any doctor you want, but you have the pay for the service at the time you see the doctor. Only certain services are provided with this plan.