Individual Health Insurance Options
When you’re buying health insurance you’re confronted with dozens of choices and programs—all of which can seem very confusing and just plain expensive! However, because there are so many choices, there is bound to be an insurance plan that is right for you.
Here is a short primer on some of the basic types of health insurance.
| Option |
Features |
Advantages |
Disadvantages |
Indemnity(also called fee for service) |
- Deductible must be met before receiving benefits
- After meeting deductible, pays a co-insurance percentage of charges
|
- Allows choice of physician
|
- Relatively expensive; pays 70–90% after meeting deductible
|
HMO(Health Maintenance Organization) |
- Healthcare coordinated by primary care physician
|
- Economical; relatively low co-payment
|
- Little freedom to choose physician or healthcare facility
- Primary care physician must refer you to specialist if needed
|
PPO(Preferred Provider Organization) |
- Allows you to choose care providers inside the network or outside the group
|
- Within network, healthcare providers are usually covered for 90–100% of costs
|
- Outside of network, costs are similar to indemnity plans
|
POS(Point of service) |
- For basic care, stay within the network. For specialists, you pay a percentage of charges
|
- Less expensive than PPOs
- More provider choice than HMOs
|
|
Federal:
Medicare |
- Healthcare for people who qualify for Social Security
|
|
- Available only after age 65, or when extreme disabilities are present.
- May not cover everything
- Supplemental insurance often required
|
Catastrophic |
- Healthcare for major medical expenses
|
- High deductible
- Relatively low cost premiums
- Good option for people with general good health and ability to cover moderate costs
|
- You pay all office visits and prescriptions costs for routine care
- Possible high out of pocket expense
|
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