What are the four basic types of health insurance?
If there is more than one choice, you likely have to decide between an HMO, PPO, EPO or POS option. People shopping for Medicare plans may also be choosing between these same types of options.
Understanding the Different Types of Health Insurance Coverage
Choosing the right health insurance plan can be overwhelming and confusing. To make sense of the process, it is important to understand the different types of coverage that are available. In this article, we will outline the various types of health insurance policies, so you can make an informed decision about what might be most suitable for you and your family.
The most common type of health insurance is employer-sponsored health insurance. This type of coverage is provided through an employer, who pays a portion of the premiums while the employee covers the rest. With employer-sponsored insurance, the benefits, coverage, and cost-sharing rules usually vary depending on the plan chosen.
In addition to employer-sponsored plans, individuals and families can also purchase private health insurance plans. These plans typically offer extensive coverage that can include mental and preventive services like check-ups and immunizations. However, private plans are often more expensive than employer-sponsored plans.
Medicare is a federal health insurance program for people over 65 and some people with disabilities. This type of plan provides coverage for hospital and medical care and helps pay for hospital stays, doctors’ visits, medication, and other services.
Medicaid is a state and federally funded health insurance program specifically for people with low incomes and limited resources. Medicaid pays for doctor visits and hospital stays, and also covers some other services such as mental health care, vision care, and rehabilitation services.
Another option for health insurance coverage is through the Affordable Care Act (ACA) marketplaces. Individuals and families can purchase health insurance plans through these exchanges, which provide coverage for preventive care, hospitalizations, doctor visits, prescription drugs, and more. The cost of these plans will vary depending on the level of coverage chosen.
No matter which type of health insurance coverage is chosen, it is important to read and understand the plan carefully before signing up. Knowing the types of coverage available, as outlined in this article, will help you make an informed decision about the best plan for you and your family.