Which Insurance Plan Should I Buy?

Health insurance is divided into two categories. There is public health insurance, which is government programs like Medicare, Medicaid, and Trump Care.

Then there is private health insurance. Most individuals are enrolled in some a private insurance plan through their employee benefits or the insurance market. These plans operate working within the web of medical care companies.

Types of health insurance plans

There are many types of health insurance plans to choose from. It is important to find the best insurance plan that works for you.

Employer Health Insurance

Business organizations purchase private group health insurance plans. These plans match the same guidelines as other kinds of health insurance and employers manage the policies.

A group insurance policy includes a wide range of individuals. For this reason, group insurance plans are more affordable than individual health policies. These plans tend to have decreased deductibles and premiums.

On-exchange health insurance 

On-exchange health insurance plans are plans that are on government, state, and federal markets. On-exchange insurance policies must meet the 10 crucial benefits and any other services required by state laws. These plans also offer premium tax credits in addition to cost-sharing rebates.

 Off-exchange health insurance

Off-exchange plans are health insurance policies that are contracted by health insurance organizations, 3rd party merchants, and privately run insurance markets.

Like on-exchange insurance plans, off-exchange plans must also cover the 10 mandatory benefits in accordance with the Affordable Care Act guidelines.

The only disadvantage of this type of plan is you are not allowed to appeal premium tax credits and rebates.

Short term health insurance

Short term insurance policies grant individuals restricted medical care for a brief period. Short term insurance may not be the best option for you as it does not include the same benefits as a qualified health insurance plan. In short, this type of insurance plan may not give you the benefits you need.

Short term insurance may be the best option for you if you are looking for coverage for one to two months. Many large health insurance companies have short term policies for people searching for employment or for individuals whose employee benefits have not started yet.

 Health Maintenance Organization 

Health maintenance plans are very limited in evaluating health care service providers. If you select a Health Maintenance Organization plan you will have to pick a primary care physician who will handle all your health-related needs and refer you to a specialist should you need to see one.

The advantage of this kind of plan is they have lower premiums compared to other insurance policies. The con of this plan is that it does not provide coverage for healthcare costs that are outside of the selected network.

 Preferred Provider Organization 

Preferred Provider Organization policies are the most nonrestrictive plan. When evaluating health care providers within and outside of your network you have the power to decide to go with a doctor within the network at a cheaper price or an outside doctor at an increased rate.

With this kind of plan, you will not need to be referred to a specialist and you can select a primary care provider. However, this plan has costly premiums compared to other kinds of insurance policies.