WalletRehab - Ways to save money

When it comes to health insurance, many are covered by their employer, but what if you are self-employed, or simply want a better standing of the coverage itself? When it comes down to it, there are only four types of plans to choose from.

One of the most common types of plans is the HMO, short for health maintenance organization. This plan involves the insured choosing a doctor based on a list provided by the insurer. Also, you must go through this main doctor to see a specialist. This coverage is the cheapest, with low monthly premiums, but is also the most restrictive.

The second type of health insurance plan is the PPO, short for preferred provider organization. This coverage is more flexible than the HMO, but at the cost of higher premiums. You can choose your own doctors, as well as selecting from the provider network. Another bonus is the ability to see a specialist without a referral.

The third type of health insurance type is the indemnity plan. An indemnity plan is where the insured choose their own doctors. With an indemnity plan, all of your expenses are covered during hospitalization. Unfortunately, for all of this flexibility, your premiums are extremely high.

The last type of health insurance plan is known as the point of service plan, or POS. The point of service plan is a hybrid of the PPO and HMO, where they may select a doctor either inside or outside of the network, but the premium remains the same.