5 Types of Health Insurance and Their Pros & Cons

The market for health insurance has significantly increased through time. People begin to realize the importance of having security because they know that some incidents in their lives can’t be predicted or prevented. That is why while they have the capacity for insurance, they would buy for the premium policies. It is a proactive decision to ensure that you can pay hospitalization expenses and other bills when unfortunate events happen. However, because of financial fluctuations even businesses today would opt for retrenchment resulting in retrenchment and downsizing decisions. If you are one of those who will be affected by these drastic measures, here are some insurance you can take advantage of. Each of these insurances has pros and cons.

1. The first choice of insurance policy is a Preferred Provider Organization. This type of insurance provides flexibility in terms of choosing who your physician will be. Normally, an insurance policy will have a set of physicians who are affiliated with them. You can choose from their preferred range of physicians or your own preferred physician. If you have a specific doctor in mind, better get this type of insurance. But along with this flexibility is a price you have to pay. PPOs cost more than other types of insurances.

2. Another type of insurance is a Health Maintenance Organization. This is a low cost but you will be limited to specific physicians. Another disadvantage of this insurance is the referral requirement. That seems stringent right especially if you have been consulting the same physician for the past few years. For a low cost, expect some limiting factors.

3. Another cheaper health insurance option is Point of Service (POS). You will be paying from around $10-$20 and there will be no deductibles. However, this will also require a referral when you need to be checked by a specialist. This could be time-consuming because your request for referral may take some time.

4. If your budget is very limited because of financial constraints, Exclusive Provider Organization is marketed towards the marginal sector. This type of insurance will ensure that you will only get services from in-network medical providers that are listed in the insurance company. The problem with this type of insurance is the fact that it has a limited or small number of health care providers and you will settle only among them. This could be detrimental if your health condition requires a specialist.

5. The last type of insurance that you would find beneficial is Indemnity Health Insurance. It gives you freedom in terms of the physicians of your choice or a facility and medical center you want to be treated. This sounds like a good idea if you are a picky type of person and you need specialists for your illness. However, it has one major drawback. You need to pay first all of the hospital and other related expenses. Keep all the receipts, documents, medical abstract and even photos that will prove your claim for reimbursements. Yes, this type of insurance is simply a reimbursement and if you don’t have cash or liquid asset, it will be a problem especially if you need urgent medical need.

source: https://healthylifestyle.org/which-type-of-health-insurance-is-best-for-me/

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