Types Of Health Insurance

Health insurance is a very important instrument and can contribute to saving your life in case of adverse circumstances. It is advisable for everyone to have health insurance so as to ensure that no one in the society goes without medical care. There are various types of health insurance available some of which are discussed below:

• Traditional Health Insurance - is the most flexible type of health insurance. Under traditional health insurance you can choose any doctor without prior approval from the insurance company. However, like all insurance policies certain conditions apply to traditional health insurance as well. You will have to bear a certain percentage of your medical bills before the insurance company takes over these payments. However, traditional health insurance protects you from large medical expenses by requiring you to pay a certain percentage of the total medical bills only. It is more expensive than other types of health insurance and mostly has an upper limit on claims.
  
  
• Managed Care – is one of the most common types of health insurance held by people today. Companies providing managed care give customers substantial financial benefits if they use health care providers in their particular network. Companies providing managed care have standards for including health care providers in their network after assuring quality health care.

• HMO (Health Maintenance Organization) – provide the least expensive and the least flexible health insurance cover. HMOs like managed care cover your medical expenses only if you visit a health care provider in their network. However, there are exceptions to this rule in case of emergencies or travel. Most HMOs require you to choose a health care provider whose approval will be required for visiting a specialist. Unlike traditional health insurance, most HMOs do not require you to shoulder a certain percentage of your medical expenses.
  
  
• Preferred Provider Organizations (PPOs) – Like HMOs and Managed Care Providers, PPOs have a network of health care providers. Policyholders are provided financial incentives to get medical care from a health care provider within their network. PPOs differ from HMOs in that you can visit a specialist in your PPO network without prior approval. However, most PPOs do not cover preventive care services such as vaccinations etc. Also unlike HMOs you may have to pay the entire cost if you visit a health care provider outside the PPO network.
  
  
• Point-of-Service (POS) – health insurance plans are similar to PPOs except that they have an intermediary whose clearance is required before visiting a health care provider. This intermediary is known as the Gate Keeper or the Primary Care Physician. Like PPOs, POS also have a specific network of health care providers. However, your require approval from the Primary Care Physician before you visit a specialist. Although POS allows you to bypass the Primary Care Physician and visit a specialist on your own, it required you to shoulder a larger chunk of your health care expenses in that case. POS also offer preventive care services and health improvement programs including workshops and seminars on nutrition and smoking cessation, and discounts at health clubs, gyms and swimming pools.
  
  
• Short-term Health Insurance – plan is similar to term life insurance in that it provides protective cover for a specific tenure only. Short-term health insurance has different covers ranging from catastrophic to comprehensive. It however, excludes expenses of childbirth. Short-term health insurance mostly does not cover pre-existing medical conditions. Also short-term health insurance plans are very hard to qualify for as companies providing such insurance have stringent qualification standards.