Types of Health Insurance Plans

There are 5 main types of Health Insurance Plans:  PPOs, HMOs, POS's, Traditional Plans, and HSA's,

Here is the definition of each plan type:

HMO (Health Maintenance Organization)
Prepaid health plans in which you pay a monthly premium and the HMO covers your cost of care to see doctors within their network at pre-negotiated rates. You must choose a primary care physician who coordinates all of your care and makes referrals to any specialists you might need. If you are an HMO member and you do not use the doctors, hospitals and clinics that participate in your plan's network, you will usually bear the cost of those medical services.

PPO (Preferred Provider Organization)  

A network of health care providers that have agreed to provide medical services to a health plan's members at negotiated costs. PPO members typically make their own decisions about their health care rather than going through a primary care physician like HMO member. The cost to use physicians within the PPO network tends to be less than using a non-network provider.

Indemnity (Traditional)
Traditional health insurance that usually covers a percentage of the cost of care (often 80%) after the consumer pays a deductible. Insured's with indemnity / traditional coverage can choose any doctor or hospital for their care.

POS (Point-of-Service)
A type of managed care plan combining features of health maintenance organizations (HMOs) and preferred provider organizations (PPOs). You can decide whether to go to a network provider and pay a flat dollar or to an out-of-network provider and pay a deductible and/or a coinsurance charge.

HSA (Health Savings Account)                      

A Health Savings Account is a tax-favored savings account, combined with a qualifying high-deductible health insurance plan. This combination can provide: 

•  Lower-cost Major Medical Protection         
•  Significant Premium Savings
•  Immediate Tax-savings
•  Long-Term Investment Vehicle