There are different types of health insurance plans you can choose from. Many people consider the cost of premiums as the first factor when choosing insurance plans. However, the fact is that a plan that may look cheaper in terms of premium might end up costing the most.
If you are looking for ways on how to save on health insurance, you may need to go for a plan that offers a good balance between the premium charged and coverage extended.
Below is a brief of each plan and what it covers.
Health Maintenance Organization Plans (HMO plans)
These insurance plans are very popular. If you take an HMO plan with your insurance, you will have to choose a primary care physician from the list of healthcare providers you are given.
The primary provider you choose will undertake all your healthcare needs. This means that if you need to see a specialist, you have to first get a referral from your primary care physician. The plans prohibit you from visiting out-of-network providers unless your primary care provider recommends, and the request gets approved by the insurance.
As you can see, the HMO plans are quite limiting, but on the brighter side, you incur less on co-pays and premiums.
Preferred Provider Organization (PPO) Plans
In the PPOs plans, an insurance company presents you with a list of healthcare providers it has pre-negotiated rates with. The aim is to help you keep your costs down. However, the plan doesn’t restrict you from visiting out-of-network providers, but you will incur more cost than when you visit in-network providers.
As compared to HMO plans, most PPO plans are more flexible. For instance, you don’t have to consult a primary care provider for referral whenever you want to see a specialist. But on the downside, you pay more premiums and have an annual deductible amount with this plan.