Understanding Different Types of Health Insurance Plans

Are you confused about which health insurance plan you should purchase? If you’re currently trying to decide which cheap health insurance policy to buy, then it’s imperative that you have a good understanding of the different types of policies available. This quick guide will explain about the various types of cheap health insurance available to individuals and families so you won’t end up making the wrong choice…

HMO Health Insurance Plans
One popular type of health insurance you’ve no doubt heard of is an HMO policy. An HMO (Health Maintenance Organizations) policy restricts the holder to receiving care from a pre-approved list of physicians. If you have this type of health care policy and you end up needing to see a specialist, you will need to first be approved and referred through your primary care physician.

Some policy holders find that these limitations are too strict and just don’t work for their families. However, some potential upsides to HMO plans are that they might run cheaper than other types of plans. HMO plans also often include very low co-payments.

PPO Health Insurance Plans
A second common type of health insurance plan you can get is a PPO. PPO (Preferred Provider Organizations) plans are different from HMO plans in several key ways. First of all, with a PPO plan there are fewer restrictions on who is covered in part of your network. And should you decide to see an out-of-network provider you’ll still get some coverage, although you will be charged more than you would seeing someone “in-network’.  Of course, additional freedom does come at a small price as PPO policies on average tend to cost slightly more than HMO policies.

Finding a Cheap Health Insurance Policy
Finding a cheap health insurance policy that still gives the coverage you need for yourself and your family isn’t as hard as you may think. As with any other purchase you’ll make in your life, the key is to shop around before settling on anything. Spend some time researching free online insurance quotes first and you’ll earn your time back in bigger savings.