Having health insurance is essential to having peace of mind about your family’s well being. Everyone needs medical insurance in order to get the proper medical attention but  medical costs can be very expensive. Being insured can make paying those expenses much easier, as well as take the possibility of huge debt due to these medical bills out of the equation.

There are many affordable medical insurance options out there. Deciding which option is best for you and your particular health care needs is key to not overpaying or, even worse, being under insured. Here are some facts about the different types of health plans:

Major Medical Insurance, or traditional insurance, is the most comprehensive type of insurance. The insured is responsible for paying a premium as well as a deductible before the insurance carrier covers you completely. The insured can go to any doctor or hospital to receive benefits or treatment and be reimbursed by the insurance company. Comprehensive Major Medical coverage covers both hospital visits as well as regular checkups and doctor visits. Major Medical is an “umbrella coverage” as it covers everything and can custom tailored to your specific needs.

HMO’s are a very popular type of medical insurance. HMO stands for health maintenance organization. The members of this type of medical insurance plan are given a list of doctors who are in their network. Most people select a primary care physician from their network who will oversee their medical care. Patients usually pay a co-pay for these services; the co-pay depends on the medical services needed such as an emergency room visit, a visit to a specialist, a visit to your primary care physician, etc.

PPO stands for preferred provider organization. In a PPO, the member gets a discount on their health care services. A PPO is similar to a HMO in that both provide their members with a list of hospitals, doctors, and specialists that are in their network. The insured is then billed for these services at a discount.

Health savings accounts are special accounts that people can have that benefit them when they do their taxes. The money is taken out to pay for medical expenses and these expenses are not covered by their medical insurance and are tax deductible. In order to set up a health savings account, you have to have a high deductible health insurance plan or have your own business that has less than fifty employees. HSA’s are meant to fill the gap you deductible leaves you.

A POS is a point of service plan; it has some of the traits of HMO’s and PPO’s. In a POS plan a member picks a primary care physician from a list of providers. The primary care physician that you choose is in charge of all of your medical care and makes referrals to specialists that are in your network if necessary. You can see doctors that are not in your network but you need to take care of the paperwork and submit your expenses to your insurance company to be reimbursed.

It can be hard to pick a health plan, especially if you have a family to cover as well. Medical insurance is like a safety net; in a medical emergency it can save your life and prevent you from going deep in debt due to medical expenses. The right medical insurance can not only save you the massive debt that can be occurred if a serious condition arose, but can save you money day by day on doctor and physician visits.

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