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Types of Health Insurance Plans


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There are a few types of plans for consideration, including: PPO Plans, POS Plans, EPO Plans, HMO Plans, High Deductible Plans, Health Savings Accounts, Self-Directed Health Plans, Prescription Plans and Discount Plans.

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A main thing to remember is that the flexibility of health plans increases as the cost of such plans increases. That means you pay more, but you have access to providers of your choosing, and are not as constrained to a list of doctors within your plan, in a specific geographic coverage location.

Likewise, as you cut costs, you tend to cut flexibility. In general, an HMO plan is least expensive, but it is also least flexible. A POS plan is moderately expensive, and also moderately flexible. A PPO plan is more expensive, and more flexible.

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A different way of looking at your health plan options is to consider setting money aside in a special Health Savings Account, or to have a declining balance for medical needs with a Self-Directed Health Plan.

Prescription plans are add-ons that help cover the cost of medication. Discount plans aren't actual health insurance plans, but they can help save you money when paying medical fees.

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Key Facts...

In 2005 $2 trillion was spent on health care services in the United States. On average, each person was responsible for a total annual health care bill of $6,700. Is your health insurance plan working for you and your family?

Source: National Coalition on Health Care. Catlin, A, C. Cowan, S. Heffler, et al, "National Health Spending in 2005." Health Affairs 26:1 (2006).

Health care costs in the United States rose an unprecedented 6.9% in 2005, more than double the rate of inflation. These costs are expected to rise at similar levels for the next decade. Protect your health and your wallet by investing in a health insurance plan that is right for you.

Source: National Coalition on Health Care. Catlin, A, C. Cowan, S. Heffler, et al, "National Health Spending in 2005." Health Affairs 26:1 (2006).

A 2003 study by The Henry J. Kaiser Family Foundation determined that over one third of uninsured adults reported having trouble paying their medical bills. Safeguard yourself and your family against future debt by finding a high quality health care plan.

Source: The Henry J. Kaiser Family Foundation. Access to Care for the Uninsured: An Update. 29 September 2003.