You have options when choosing a health plan, whether you're an individual looking for insurance for yourself and your family or a small business owner. You may choose the health insurance plan that best suits your coverage needs and financial situation by being aware of the various health insurance plans available.
The metals categories and major medical health plans
The health insurance policies available are categorized into four metals: Bronze, Silver, Gold, and Platinum if you purchase them through a private exchange, a public marketplace, or a brokerage company like eHealth.
These plans all adhere to the Affordable Care Act (often known as Obamacare), cover the 10 essential health benefit categories, and have a maximum out-of-pocket expense cap. In 2022, individuals with individual health insurance plans will only be required to pay up to $8,700 toward their medical expenses, with a cap of $17,400 in place for coverage of multiple people.
Beyond that shared feature, each plan differs from one another in terms of premium and cost-sharing, even when the same insurer provides numerous plans. The premium is the cost of your health insurance, which you normally pay on a monthly basis. Cost-sharing describes the split between the insurer's payment for qualifying medical bills and your out-of-pocket costs.
Deductibles, copayments, coinsurance, and the full cost of medical treatments that are not covered by the plan may all be considered out-of-pocket expenses.
The average value of the various health insurance plans, or what percentage of anticipated medical costs the plan will pay over an entire population enrolled in the plan, is indicated on the metallic labels of major medical policies.
A Bronze plan will pay about 60% of the bills, and you will contribute about 40%.
A Silver plan will pay approximately 70% of the costs; you will contribute approximately 30%.
With a Gold plan, you will only be responsible for about 20% of the costs.
A Platinum plan will cover around 90% of expenses; your contribution will be 10%.
Generally speaking, a plan's premium increases with the amount of coverage it offers.
Having a rudimentary understanding of how the level of coverage relates to premium and out-of-pocket expenses will help you narrow down which plan will best suit your needs. Your age, location, the number of people you cover, the insurer you choose, and whether you are eligible for Affordable Care Act (ACA) subsidies to lower your costs will all affect how much your actual premium will cost.
Managed care includes health insurance plans such as HMOs, EPOs, POSs, and PPOs.
Benefits for the majority of large medical plans are created to be linked to the utilization of participating healthcare providers. Understanding the distinctions between a Preferred Provider Organization (PPO), Exclusive Provider Organization (EPO), Point of Service (POS) plan, and a Health Maintenance Organization (HMO) is, therefore, a good idea (PPO).
Plans from health maintenance organizations (HMOs).
One of the most common types of health insurance available is an HMO. With this plan, a wide range of healthcare suppliers consents to give you their services. You must choose a primary care physician (PCP) who manages all of your medical needs.
The majority of preventative care, including specialist visits, is typically covered by HMOs; however, specialist appointments are only reimbursed when your PCP provides a referral.
Additionally, you might have a yearly deductible in addition to paying copayments for each non-preventive medical visit. HMOs are typically best suited for people and families that intend to regularly schedule checkups and other medical appointments with their primary care physician. The acceptance of HMO plans has dramatically grown since 2014.
Plans from Preferred Provider Organizations
With a PPO plan, you and your family have access to any medical professional in the insurance provider's network, including specialists, without needing a prescription. You are typically not required to select a primary care physician or to obtain a referral in order to see a specialist.
Any non-preventive medical care you receive will normally need copayments, and you might also have a yearly deductible. Most people who frequently see a specialist like this kind of health insurance. The acceptance of PPO plans has decreased since 2014.
Plans for Exclusive Provider Organizations (EPOs)
You can access all medical professionals in the EPO network, including specialists, if you have an EPO plan. EPO plans often do not provide coverage outside of your network, although PPO plans might (except for emergencies). EPO plans can be a good fit for people who don't mind restricting themselves to doctors in a network and who don't want to use a primary care physician to organise their care. The acceptance of EPO plans has grown since 2014.
Plans for point of service (POS)
HMOs and PPOs are combined in POS plans. You will likely need to choose a primary care physician with a POS plan for routine checkups and referrals. However, if you're ready to pay more out of pocket, you can use out-of-network providers; in most cases, there will be a copayment and deductible as well. This flexible plan may be suitable for those who are willing to pay a little bit more for greater flexibility.
Plans with a high deductible for medical expenses
Plans with high deductibles span categories. Others could be EPO or HMO plans, while some are PPO plans. Before your health insurance coverage kicks in, you must meet a high deductible associated with this form of insurance. People who want to save money with low monthly premiums and don't intend to utilise their medical coverage frequently may be good candidates for these plans. HDHPs and HSAs are frequently used in tandem (HSA).
You can purchase an HSA-compatible health plan if you currently make contributions to an HSA. To cover eligible medical costs, such as annual deductibles, money can be saved in an HSA on a pre-tax or tax-deductible basis.
Plans for temporary health insurance
Plans for temporary health insurance are in violation of Obamacare regulations. However, if the Obamacare open enrollment period passed you by, a temporary health insurance policy may be able to offer you some level of coverage in the interim.
While short-term insurance has fewer advantages than major medical, it can protect your cash in case of a covered accident or sickness. The drawback of this sort of insurance is that it does not satisfy the standards for minimum necessary coverage set forth in the Affordable Care Act, which could result in a tax penalty.
Additionally, pre-existing conditions may not be covered by short-term insurance. Preventative treatment such as physicals, vaccinations, dental work, and vision care are not covered by short-term insurance because it is non-renewable.
Be aware that some jurisdictions and insurance providers may restrict your capacity to submit consecutive applications for short-term plans.
Plans for gap insurance
Plans with gaps in coverage are created to provide as an emergency safety net for unforeseen medical expenses or other charges you might incur in the event of a medical emergency. For coverage in the event of catastrophic medical concerns, if you don't have a major medical policy, you may purchase gap insurance. However, you can still purchase gap insurance as a supplement to your major medical or short-term insurance as extra security.
Gap insurance covers items like:
In the event that you are diagnosed with cancer, a heart attack, a stroke, or other serious illnesses, critical illness insurance will pay you a lump payment.
You can receive a cash reimbursement from accident insurance in the event of covered accidents (separately from your automobile accident coverage)
Fixed-benefit indemnity medical insurance, which pays out cash benefits in the event that you have any of the predetermined diseases or injuries, is available.