Health insurance ensures that you can pay for the treatment of a serious illness or injury. You can get healthcare insurance through your employer or buy an individual plan. You can also get a plan offered by the Federal government like Medicare, Medicaid, the Department of Defense, or Veteran Affairs. If you don’t have a policy yet, read on to know the different types of health insurance plans and how to choose them.

Different types of health insurance plans

Indemnity insurance
Indemnity insurance or a fee for service is a traditional payment model where the insurance companies reimburse the doctors or other healthcare providers for every test, procedure, or treatment. It is a non-network-based coverage. It gives more flexibility in choosing or changing your doctor or hospital anytime, provided you have medical records from your primary care physician. It only pays for part of the medical bills, and your out-of-pocket expenses are likely to be higher. You have to spend a fixed amount (deductibles) every year before you start getting benefits in this type of insurance.

Managed care plans
Managed care plans are the most popular plans covering a wide range of health services. The cost is lower, and patients can use the services of doctors and other healthcare services who participate in this plan. The paperwork is lesser too. You may have to copay every time you visit the doctor or a hospital or when you fill a prescription. Managed care plans cover a list of prescription remedies and may support mail-order pharmacy options. Your out-of-pocket cost is likely to be lower than indemnity insurance. The three main types of managed care plans are:

Health maintenance organizations (HMOs)
Once you enroll in an HMO, you can select primary care physicians who coordinate your care. They could include family doctors, pediatricians, general practitioners, or obstetricians-gynecologists. HMO gives coverage for specialist care only if your primary care physician gives a referral. Your doctor will have to contact your insurance company within 48 hours to receive confirmation of coverage in the event of an emergency. HMO plans are less expensive and ideal for patients in overall good health and may not require regular care.

Preferred provider organizations
Preferred Provider Organizations (PPO) is a type of health insurance plan offering a preferred network of healthcare service providers, including doctors and hospitals. The participating providers agree to provide services to patients at a discounted rate. You can choose any doctor you want without the approval or referral from your primary care physician. However, if you want to use a provider’s services outside the network, you have to pay additional costs. PPO plans are ideal for those who want to choose their provider, for those who need regular care, or for those who travel frequently.

Point-of-service plans
When you buy a Point of Service (POS) plan, you choose a primary care provider to manage your health care needs. If you see in-network providers, the cost of care is lesser. If you want to see out-of-network specialists, you have to pay more money out-of-pocket. If you want to see a specialist, you need a referral from a primary care physician.

How to choose the right health insurance plan

• Yours and your family’s primary health needs must be the first factor you consider. Take stock of your previous medical expenses and treatment.
• Decide on the type of plan – HMO, PPO, or POS.
• Leave out plans that do not include doctors from your locality.
• If you choose an HMO or POS plan that requires referrals, you have to see a primary care physician before meeting a specialist.
• Choose a plan covering a big portion of your costs if you need regular and continuous emergency care, if you take expensive or branded prescriptions, or expect a child.
• Choose a higher out-of-pocket cost if you have good health and don’t see a doctor regularly.
• Compare benefits of plans like preventive care, screening, health- check-ups, and vaccines.