Buying health insurance for the first time seems confusing at first. You are presented with so many insurance options that you are unsure which is best. In reality, getting your first health insurance plan does not have to be daunting. You need to be clear on a few things, such as what expenses you need insuring and how you will pay for the insurance.
Types of Health Insurance Plans
To make the correct choice of health insurance, you need to be aware of the different insurance types you can choose from. The most common ones are:
- PPO (Preferred Provider Organization) – These are insurance plans which give you access to a network of doctors under a common agreement. Under this plan, providers agree to charge you less than non-members. In addition, PPOs are notable for giving you wide access to doctors as well as specialist visits without needing a referral.
- HMO (Health Maintenance Organization) – HMOs give you a primary care physician who has to issue a referral for specialist visits. You get less choice on the doctors you can see.
- HDHPs (High Deductible Health Plans) – An HDHP is an insurance plan which has a high amount you must pay out-of-pocket before it kicks in. Monthly insurance premiums, however, are lower than with other plans.