Wednesday, January 13, 2010

Things To Be Known For Effectively Distinguishing Individual Health Insurance Plans

There are various types of individual health insurance plans. Thus,it is important to know about fee-for-service, PPO and HMO health insurance policies...

Types Of Health Insurances:

If you want to secure your very own health insurance policy because you are self employed, you have to start the search for the most appropriate and suitable product to you now. You would find that the search could be confusing because there are just too many options and choices available. You may already have encountered phrases and terms like fee-for-service, PPO, and HMO. These are the most common types of individual health insurance plans available in the health insurance market.

1)Fee-for-Service Health Insurance Plans:
Fee-for-service health insurance plans for individuals are often called indemnity plans. In this type, the insurance firm pays for the health services you avail. You would have more freedom and flexibility to choose the doctor to attend to you or the hospital where you would seek medical attention. The only setback is that you would be required to pay the services for the meantime and then file to claim a refund of your medical expenses from the insurer later. If flexibility and freedom is what you are after, this type is for you. If you are not comfortable with the refund or reimbursement arrangement (probably because you are afraid of the legwork in completing and submitting claim forms), you should drop this type from your list.

2)Health Maintenance Organizations or HMOs:
Health maintenance organizations or HMOs could be considered as prepaid individual health insurance plans wherein you would be required to pay monthly, quarterly or annual premium so you could avail the health benefits and coverage provided. The striking difference from the fee-for-service is that you do not have the liberty and flexibility to choose a doctor or a hospital. You would be assigned to consult doctors that are HMO participants. The advantage is that you would not have to pay any dime when you avail of the medical coverage, provided that you do not exceed the set limit.

3)Preferred Provided Organizations or PPOs:
Lastly, preferred provided organizations or PPOs are considered hybrids of HMO and fee-for-service. It is similar to HMO in that doctors and medical facilities are assigned (usually participant PPOs, also known as in-network providers). In-network providers are preferred because they incur least expense. Just like HMO, you could also visit other doctors or hospitals of your choice provided no in-network provider is available in the area or in the period the need arises.

When comparing individual health insurance plans, start with features that are most needed and important to you. If you prefer to consult with your own choice of doctors, an HMO is not for you. If you are most concerned about costs, HMO could be your best option. If you want greatest flexibility, fee-for-service plans should be selected and bought. Make an informed and wise decision.

To Learn more about such types of health insurance policies visit the website
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