Basic Types of Health Insurance
The basic types of health insurance are:
* Short Term Health Insurance
* Catastrophic Coverage
* Traditional Fee-for-Service Coverage
* Preferred Provider Organizations (PPO)
* Point-of Service (POS)
* Health Maintenance Organization (HMO)
Today’s health insurance market is broken into many segments. Some are highly specialized in their coverage and others are more comprehensive. The more comprehensive and inclusive the health insurance the higher the premiums.
It is generally in your best interest to purchase group coverage (through an employer) when available. Group coverage is generally more comprehensive and group rates are generally lower because their is strength in numbers. However, group plans are almost always managed care programs and have lots of restrictions.
If group coverage is not available then you will have to purchase an individual plan. Individual plans are medically underwritten and there are no guarantees that an insurer will approve your application. Premiums for individual policy holders are more in line with their expected health care cost than in group coverage. That means, the premiums will be higher for those who are older or less healthy.
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