Health Insurance Basics

Not only does moving to a new location usually mean a change of town– it often means a change of job. And chances are if you’re employed, you’ll be covered by some kind of managed health care plan.

There are three main types of managed care plans:

• Health Maintenance Organizations (HMO)
• Point-of-Service (POS)
• Preferred Provider Organizations (PPO)

All of these plans offer substantial health insurance benefits to members and their families If you’re fortunate enough to have a choice of plan, consider the advantages, and disadvantages, of each. Compare the cost of care, the difference in premiums, deductible amounts and your freedom to choose a doctor outside the plan. There are numerous other coverages to compare as well — from prescription drugs to dental to alternative therapies. Be sure you understand the fine points of each.

A second type of health insurance is Fee-for-Service,which normally covers the same expenses as managed care. The difference is your doctor is paid for each visit,with the claim filed by either the patient or the medical provider. A big advantage– unlike some managed care plans, Fee-for-Service allows the patient to visit the doctor of his, or her, choice.

For those of you who are unemployed or self-employed, an individual health insurance policy is always an option. Unfortunately rates for these policies are high and the coverage is usually less comprehensive than a managed care plan. The good news is that, in many cases, your insurance premium will be tax deductible. Of course, if you’re married, you can always try to catch a ride on your spouse’s group health insurance benefits plan.

Good luck, stay healthy… and be sure to understand all of the health insurance basics before making your decision.