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The Three Types of Health Insurance Plans

Health insurance is usually a kind of insurance which covers either a certain portion of the potential risk of an individual incurring personal medical expenses against his insurance policy. As with any other forms of insurance, however, health insurance is also risk amongst many people. For one, it is difficult to assess accurately the number of risk factors which may cause an insured individual to fall ill. In addition, when you do not have health insurance coverage, if you ever do fall ill, you will most likely incur exorbitant medical costs. This is where health risk insurance steps in to provide a degree of protection for you.

Introduction

Health insurance, however, provides a different kind of protection. A catastrophic plan is one type of health plans, which allows the insured individual to shift the burden of high health care costs on an insurance company if he is diagnosed with a certain disease, illness or condition. There are two different categories of catastrophic plans, in addition to the individual health plan: The catastrophic health plan, also called the income protection health plan and the catastrophic medical plan. Here are some aspects of the catastrophic health plan, which would help you understand what is behind this kind of insurance.

Health Maintenance Organization Plans (HMO) and Preferred Provider Organization (PPO) Plans typically provide more health coverage than the typical individual health insurance plans. A typical HMO plan limits the number of doctors you can see. Your doctor’s office visits are not covered unless you pay your monthly premium. In PPO plans, you can see any doctors you want. However, you cannot be denied any doctor visits, regardless of how much you pay for your monthly premiums.

Insurance Plan

A catastrophic health insurance plan is another type which comes with a tax credit. When you purchase this plan, you are given a tax credit every month which can be used to pay for your regular doctor’s visits, hospital stays and other health care services you need. You can use the tax credit for doctor’s office visits, prescriptions, chiropractic services and other health care services that you require. However, you cannot use the tax credit for dental care services.

These health insurance plans have a variety of features, including emergency medical coverage, prescription coverage, health insurance, critical illness coverage and extended hospitalization benefits. You can choose the plan that has the maximum deductible and the maximum coverage, as well as choose the plan that allows you to choose the doctors and hospitals whom you would prefer to see. In addition, HMO and PPO plans have special features such as referral fees, where your doctor will pay his or her own co-pay for the services. Most HMO and PPO plans also offer vision care services at discounted rates. Finally, most have a health savings account or HSA, which has tax advantages.

About

Another type is the Health Maintenance Organization, or HMO, which limits the number of out-of-pocket costs that you can incur. PPOs or Preferred Provider Organizations also restrict the out-of-pocket expenses. Each plan has its own unique benefits and drawbacks, so you should know what they are before you sign up for one. You can compare HMO and PPO health plans by visiting an online health insurance site. These sites provide the needed information on each type of plan.

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