Health care insurance is something all of us need because we never know what future holds for us and not everyone can afford to pay heavy bills when an emergency arises. Hence, the importance of health care coverage can never be overstated.
It is a well known fact that shopping health care insurance plans can be a tedious task. You will come across many options when you look out for health insurance plans and may end up in a decision bottleneck. If you are planning to purchase a plan from the Marketplace, you will see the plans arranged by their care levels, such as gold, silver, platinum, bronze and catastrophic. Now, you might be wondering how these plans differ from each other? Each of these plans promises to pay a fixed portion of health expenses of the beneficiary. Below are the figures:
- Gold: This plan covers 80 percent of your health care costs while you are responsible to pay the remaining 20 percent
- Platinum: It covers 90 percent of your health care cost while you will pay 10 percent
- Bronze: It will pay 60 percent of your health care cost whereas you will pay 40 percent
- Silver: It will cover 70 percent of your medical cost while you will pay 30 percent
- Catastrophic: It will cover your health care costs after you reach the yearly deductible of $6,350 as an individual and $12,700 as a family
You will also find health insurance brands linked with these care levels. These brands might offer one or more of the following four common types of health insurance options:
- Health Maintenance Organization (HMO):
- It gives you the minimum freedom to select your health care providers
- It comes with foreseeable, out-of-pocket expenditures
- It involves minimum paperwork in relation to other health plans if you decide to see providers outside their network
- It provides you a primary care doctor who can refer you to a specialist whenever required
- Preferred Provider Organization (PPO)
- It gives you moderate freedom to select your health care providers; you do not need referral from your primary doctor to go to a specialist
- As compared to HMO, this plan comes with more out-of-pocket expenses
- Involves extensive paperwork if you decide to see providers outside their network
- It empowers you to manage your health care
- Point-of-Service Plan (POS)
- You are at more freedom to select your health care providers as compared to PPO and HMO
- Involves modest amount of paperwork if you decide to see providers outside their network
- You get a primary care doctor who will coordinate your heath care and refer you to specialists whenever required
- High-Deductible Health Plan With or Without a Health Savings Account
- You may pay less for your health care plan if you get a high-deductible health plan
- You get any one of these health care plans: POS, HMO, PPO
- It involves more out-of-pocket charges as compared to other plans; however, when you reach the highest threshold of out-of-pocket cost, the plan will pay for all your health care cost
- A Health Savings Account will pay for your health care since the money you save in it for your health care is not subject to tax
- Involves moderate amount of paperwork if you decide to go to providers outside their network
- Depending on the plan, you can either get a primary health care provider or you can manage your own health care with freedom
One you have shortlisted your health care plan options to one or two, its time to get answers for remaining questions you might have. So, pick the phone and call up the customer service line of you potential providers and get your answers before making a final decision.