Health insurance plans explained

When delving into the topic of health insurance, it’s important to have a good understanding of the basic types of coverage that are typically available. There are three main types of health insurance plans, here is a brief introduction:

Health Maintenance Organizations (HMOs)
HMOs generally offer the most affordable health insurance option. However, HMOs are also more restrictive than other plans in that you must have a primary health care provider and you often are required to obtain a referral from your primary care physician to visit a non-emergency specialist.

Preferred Provider Organizations (PPOs)
PPOs, on the other hand, do not require, members to work through primary health care providers. However, with PPOs, members receive greater benefits when visiting a preferred provider as opposed to a non-preferred provider.

Fee-for-service health insurance plans
These types of plans are usually the least cost-effective health insurance coverage. But they are flexible in that they allow members a lot of freedom when choosing doctors and other health care providers.

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