Benefits of different health plans.

Before you begin shopping for health insurance it is important to know which plan would best suit your needs before purchasing a plan. Doing a health insurance comparison of the different plans can insure that you receive the best plan for you and your family. There are five main health insurance plans that most companies offer. A traditional health insurance plan, a Health Management Organization (HMO), a Preferred Provider Organization (PPO), an Employee Preferred Organization (EPO), and a Point-of-Service (POS) plan.

A traditional health insurance plan is the most expensive for out-of-pocket expenses but the most flexible. Within the traditional health insurance plan you are free to see any provider and do not need to stay within a certain group of physicians. Each plan varies on deductible and there are some restrictions regarding the number of office visits and the length of hospital stay that is covered. An HMO is the most affordable plan but the most restrictive. The insurance company will provide you with a list of physicians covered under the plan. You must choose one of these physicians as your primary care doctor. If you wish to switch doctors you must seek approval from the insurance company first and you can only see a doctor on the pre-approved list. If you need to see a specialist you must get a referral from you primary care doctor. If you make an appointment before getting the referral, your visit will not be covered. This inflexibility is offset by the low monthly premium and the minimal co-pay. Similar to the HMO is a PPO. With a PPO you are still required to stay within the pre-approved list of physician but there is more freedom to move around within in the list without seeking approval first. You may also see a specialist without a referral. However, the specialist must be on the pre-approved list provided by the insurance company.

Another health insurance comparison is between and EPO and a PPO. An EPO is a plan you can only get through your employer. This type of plan if similar to a PPO but your employer dictates which physicians will be covered under the plan. A POS plan is also an expensive plan there are no pre-approved lists but the monthly premiums are higher. Being an informed shopper will ease the difficulty in choosing the right plan. Each insurance company have different restrictions and rules for the various plans so be sure to read over the plan thoroughly before purchasing. Experts that are in the industry have suggested that you seek and obtain a minimum of three online quotes.