If your employer doesn’t provide health insurance benefits, you aren’t alone. In fact, statistics show that only 40% of adults under the age of 65 have health insurance provided by their respective employers. Considering that, many people need to find individual health insurance plans. While this might seem like an overwhelming task, it’s made easier by knowing more about individual health insurance options. It’s understandable to want to understand a bit about this topic before contacting an insurance company. In this post, you’ll learn about three common types of individual health care plans.
Indemnity Plans
These types of plans are situational. This means that you’ll use this coverage only when it is absolutely needed. Indemnity plans cover an already determined amount towards certain medical situations. It’s important to note that you would still need to pay other fees not covered by this plan including deductibles.
In certain situations, this type of plan is preferable if you’re wanting to choose from a wide array of medical providers. That being said, you might pay higher rates with this type of service versus others. In addition, you’ll likely be needed to fill out a bit more paperwork than with other plans.
HMO Insurance
HMO stands for Health Maintenance Organization. An HMO will have you paying lower costs than a typical indemnity plan. However, these lower costs often mean that you’ll have a more limited selection of providers. That being said, this likely isn’t going to be a problem for many people. However, you’re not likely to receive coverage if you choose to seek care from a provider out of the HMO network.
Another advantage of an HMO is that it tends to cover more preventative services than indemnity plans. You’ll also tend to deal with a lot less paperwork. If having a limited selection of providers is a big drawback or working with one primary care physician are drawbacks, there are other options.
PPO Insurance
A PPO or Preferred Provider Organization plan is another type of individual health insurance. Unlike other types of insurance plans, a PPO doesn’t require that you seek care from only one main physician. Instead, you’re able to choose from a network of care providers. PPOs are extremely popular throughout the United States. Another huge bonus with PPOs is that you don’t always need a referral to see a specialist. Many other types of insurance require referrals for more specialized treatments.
Despite the popularity of PPOs, it’s important to note that you’ll still need to pay a deductible before insurance kicks in. While deductible rates will vary, they usually cover care costs within one year. Therefore, PPOs require more of an upfront payment than other types of insurance plans.
In closing, it’s understandable to want to know more about individuals health insurance plans. Statistics gathered from the CDC in 2016 found that there were nearly 29 million people throughout the United States without access to health insurance. It’s no wonder that 60% of people feel that benefits are a major factor in choosing whether to take a job or not. If you’re currently uninsured, this is something you’ll want to take care of. If you’re still unsure of the type of coverage you’re wanting, consider contacting an insurance provider.
