Purchasing Health Insurance: Basic Facts You Need To Know

maintenance organization may require that a primary care physician in the network will coordinate the entire health care of the patient and refer to specialists, also in the network.

One must be aware of what managed care plans consists of and their differences. Health maintenance organizations (HMOs) are prepaid policies; members pay a monthly fee despite of how much medical care is needed in a specific month. By being a member, this grants you and your family complete care including doctors’ visits, hospital stays, emergency care, surgery, lab tests, x-rays and therapy.

Preferred provider organizations (PPOs) are made up of doctors and/or hospitals and the insurer pays for services as they are rendered and then it is reimbursed. With point of service plans (POS) one pays no deductible and usually only a minimal co-payment when they use a healthcare provider within their network.

POS plans are a mix between an HMO and a PPO where you have a primary care doctor and you get most of your health care from but you also have the option to choose to see doctors outside of the network at your own cost.

One should also examine the type of coverage offered by each health insurance organization and understand that it may vary. If one were to be hospitalized, hospital expense insurance pays for the room, board and incidental service costs. Surgical expense insurance covers surgeon’s fees and related costs associated with surgery. Physicians’ expense