Health insurance provides financial assistance for non-anticipated medical emergencies. Every individual has different medical needs. A health insurance plan can help you manage your health care needs, as well as costs. The cost of health care without coverage can be substantial.
Insurers use the term “provider” to describe a clinic, hospital, doctor, laboratory, healthcare practitioner, or pharmacy that treats an individual. Meanwhile, the “insured” is the owner of the health insurance policy or the person with the health insurance coverage.
Public or government health insurance
In this type of insurance, the government subsidizes healthcare in exchange for a premium. Plans have defined open enrollment periods.
Private health insurance
Health insurance plans are run by private insurance companies and you may be responsible for paying for all or some of your coverage.
Employer-sponsored health insurance
Health insurance plans are run by private insurance companies and are partially paid for by the employer. The dates and length of the period are determined by the employer, but will correspond to the start of coverage.
Other Types of Insurance
Each insurance company may offer one or more of these common types of plans:
Health maintenance organizations (HMOs)
An HMO delivers all health services through a network of healthcare providers and facilities.
Preferred provider organizations (PPOs)
A preferred provider organization (PPO) is a medical care arrangement in which medical professionals and facilities provide services to subscribed clients at reduced rates.
Exclusive provider organizations (EPOs)
An EPO, or Exclusive Provider Organization, is a type of health plan that offers a local network of doctors and hospitals for you to choose from.
Point-of-service (POS) plans
POS health insurance is a lower-cost plan relying on a primary care physician to direct health care services within an approved network of providers.
High-deductible health plans (HDHPs)
A high-deductible health plan (HDHP) is a health insurance plan with a high minimum deductible for medical expenses. A deductible is the portion of an insurance claim that the insured pays out of pocket.