5 Types of Health Insurance Plans to Choose From

Offering health insurance to your employees is your responsibility as an employer. However, you need to understand which health insurance plan is best before investing in it. Here is a list of 5 different health insurance plans with the benefits that they can provide you:

PPO or Preferred Provider Organization Health Insurance Plan

With this kind of plan, you can encourage your employees to choose any doctor or hospital that belongs to the plan’s network. They don’t have to get any referral from a primary care physician in order to visit a specialist. If they choose any services outside the network, they will have to be prepared for some high out-of-pocket expenses. It involves an annual deductible to be paid before the coverage starts.

HMO or Health Maintenance Organization (HMO) Health Insurance Plan

If you are looking for a health insurance plan that involves very low out-of-pocket expenses, HMO is what you may want to choose. However, this type of health insurance plan will not give your employees the flexibility to choose their preferred physician or specialist, unlike the other plans. They will have to first visit a primary care physician and obtain a referral in order to see a specialist. Any services obtained without such referrals will not be covered by the plan, even if it is an emergency.

The best part about an HMO plan is that it offers coverage for a wide range of preventative services including immunizations and checkups. Although a copayment is necessary, a deductible may or may not be required before the coverage starts.

POS or Point of Service Health Insurance Plan

This is a combination of HMO and PPO plans. A POS plan will also require a referral from a primary care physician that belongs to the plan’s network. You get a higher level of coverage if you use any of the services rendered or referred by such PCPs. However, you can also use the services of non-network providers if you are ready to pay deductibles and don’t mind a lower level of coverage. You can pay the healthcare costs up-front and then claim reimbursement.

EPO or Exclusive Provider Organization Health Insurance Plan

Like HMO plans, EPO plans also have a network of primary care physicians who will provide referrals to the doctors and specialists within the network. However, in case of an emergency, you can obtain services from non-network providers if you are ready to shoulder higher costs. This type of plan will require a deductible and also a small co-payment.

Indemnity Health Insurance Plans

In this type of health insurance plan, the amounts or percentage of costs that you will have to pay for the covered services are pre-determined. There are also deductibles and co-insurance amounts to be paid. These plans generally require its members to pay the healthcare costs out of their pocket and then file a claim for reimbursement.

There are many health insurance companies that offer most of the above plans. You can choose any of them through health insurance leads. But if you want to choose something outside traditional health insurance you can go for an HSA (Health Savings Account) or a QSEHRA (Qualified Small Employer Health Reimbursement Arrangements) where your employees will have the freedom to make their own choices with the contributions that you make.

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