Friday, December 10, 2010

If you are an individual who needs to buy health insurance for you or your family, there are a few things you should know before you make a decision.

Health Insurance Plans
A Health Maintenance Organization (HMO) is an affordable health insurance option consisting of an extensive network of healthcare professionals allowing you to almost always find the exact kind of care you need.

A Preferred Provider Organization (PPO) allows you to pick any healthcare provider you want. This added flexibility makes PPOs a little pricier than HMOs but many people find them worth the extra cost.

A Fee For Service (FFS) requires you to pay for healthcare costs out-of-pocket and then submit forms for reimbursement of a percentage of that cost.

These plans can usually be combined with a Health Savings Account (HSA); a tax deductible account you can use to pay for things such as premiums, medical costs, as well as prescription drugs.

Key Health Insurance Terms
Co-insurance is a percentage the insured pays upfront, typically about 20%, for medical costs.
A co-payment or co-pay is a pre-set amount the insured pays when they see a healthcare professional.
A deductible is how much the insured must contribute to healthcare costs before the plan pays for the rest.
Any service or procedure not covered by an insurance policy is known as an exclusion. Exclusions must be paid for out-of-pocket.
Out-of-pocket expenses are healthcare costs that must be paid for by the insured.
Out-of-pocket maximums are the maximum amount the insured must pay before the policy covers the rest.
A premium is how much the insured pays each month or quarter to keep their policy up-to-date.

Now that you know some of the most basic and vital health insurance information, you can better choose the best plan for you and your family.

Article provided by - visit for more on individual health insurance.


Pamela Sahagun said...

Thank you for the helpful information