What is an/a PPO,HMO,POS,HSA,INDEMNITY PLAN
January 2, 2009 by admin
Filed under FAQ 5 of 10
HOW DOES INSURANCE WORK?
PPO stands for Preferred Provider Organization. This type of insurance will normally require you to visit doctors within a certain network in order to receive insurance coverage.
This type of plan normally will have a deductible and may include a co-payment for doctor visits.
HMO stands for Health Maintenance Organization. While this type of insurance is generally much more affordable, there are more restrictions than a PPO plan. The network of available health care providers may be smaller and you will need to select a Primary Physician. However, there are usually no deductibles and co-payments for HMO plans are normally lower than PPO co-payments.
POS stands for Point of Service. This type of health insurance is a hybrid between a PPO and an HMO. You will still need to have a primary care physician, but you will have access to more health care options within your network. As with an HMO, there are normally no deductibles and co-payments are lower.
An Indemnity plan will allow you much more freedom in health care choices. This freedom comes with some drawbacks and will normally require you to pay a deductible and may also require you to pay for health care visits and submit your claim for re-payment from the insurance company.
A UCR (usual, customary and reasonable) rate will be paid out on your claims. This rate will be predetermined by your health insurance company before you purchase your policy.
You will not need to have a primary care physician with this type of insurance plan.
HSA stands for Health Savings Account. This type of plan was introduced in January of 2004. Basically, you set up a “savings account” and this account is used in conjunction with an HSA insurance plan to pay for your medical costs.
Contributions to your HSA savings plan are made at pre-tax and you may invest these funds however you would like.
Unused funds in your account are tax free and may accrue interest year-to-year.
Mail this post