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Individual Health Insurance Policies
Author David Schneider | Jan 21,2008
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Health insurance coverage is important for everyone to have. However, because of its expense, many employers have stopped offering it as a benefit. This means that millions of people in the U.S. have to buy their own individual health insurance policies. If you are in this boat, then you need to learn more about the different types of health insurance policies that are available on the market today.
Individual Health Insurance Policies -- Fee-for-Service Plans
The first type of health insurance policy that you can buy is a fee-for-service plan. This is the most traditional health insurance program, and it is also one of the most expensive. This plan allows you to use any doctor or health care provider that you want, and it tends to have the fewest restrictions on what services and supplies are covered. Coverage is offered based on a co-pay and/or deductible basis. For example, you may have an 80/20 co-pay policy with a $500 deductible. In this case, you would pay for the first $500 of medical expenses that you have each year, after which you would pay 20 percent for treatment and the insurance would cover the remaining 80 percent.
Individual Health Insurance Policies -- Preferred Provider Organizations Plans
PPOs, or preferred provider organizations, are health insurance plans that are slightly more affordable than fee-for-service plans. This coverage is based on a network of “preferred providers.” If you use a health care provider from this insurance network, then your insurance will cover a larger portion of your medical costs. However, you are not limited to using the providers in the network, like HMOs. You can use any provider you want. However, if you seek care outside the network, your insurance will cover a smaller percentage of the cost.
Health insurance coverage is important for everyone to have. However, because of its expense, many employers have stopped offering it as a benefit. This means that millions of people in the U.S. have to buy their own individual health insurance policies. If you are in this boat, then you need to learn more about the different types of health insurance policies that are available on the market today.
Individual Health Insurance Policies -- Fee-for-Service Plans
The first type of health insurance policy that you can buy is a fee-for-service plan. This is the most traditional health insurance program, and it is also one of the most expensive. This plan allows you to use any doctor or health care provider that you want, and it tends to have the fewest restrictions on what services and supplies are covered. Coverage is offered based on a co-pay and/or deductible basis. For example, you may have an 80/20 co-pay policy with a $500 deductible. In this case, you would pay for the first $500 of medical expenses that you have each year, after which you would pay 20 percent for treatment and the insurance would cover the remaining 80 percent.
Individual Health Insurance Policies -- Preferred Provider Organizations Plans
PPOs, or preferred provider organizations, are health insurance plans that are slightly more affordable than fee-for-service plans. This coverage is based on a network of “preferred providers.” If you use a health care provider from this insurance network, then your insurance will cover a larger portion of your medical costs. However, you are not limited to using the providers in the network, like HMOs. You can use any provider you want. However, if you seek care outside the network, your insurance will cover a smaller percentage of the cost. |
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