Allied Premium Insurance Blog
Different Types of Healthcare Plans
Different types of health insurance plans meet different needs. When you compare options, it's important to understand some of the ways plans are structured.
Health Maintenance Organization (HMO)
This type of health plan only covers services from a network of doctors in your area. With some HMO plans, you'll need to choose a main doctor, also called a primary care physician (PCP), from the HMO network. Your PCP helps you manage your care. If you need a specialist, you'll most likely have to go through your primary care doctor to get a referral.
Preferred Provider Organization (PPO)
These insurance plans give you a choice of getting care within or outside of a provider network. You may use out-of-network providers and facilities, but you‘ll have to pay more than if you use in-network ones. If you have a PPO plan, you can visit any doctor without a referral.
Higher Deductible Health Plans (HDHP)
If you think you won‘t use that much health care next year, you could get a plan that may cost less per month with a higher deductible. And we also cover some of the basics at no extra cost — like checkups and other preventive care.
People under 30 and people with certain financial limitations may buy a "catastrophic" health plan. It‘s called catastrophic because it protects you if you end up with some really large medical costs due to an unexpected illness or accident. These plans often require that you pay all of your medical costs up to a certain amount, usually several thousand dollars — although some also cover some preventive care like checkups.
Exclusive Provider Organization (EPO)
This type of plan has a select network of care providers. Except in an emergency, you would only get benefits from an in-network provider. With an EPO, you can see an in-network specialist without a referral from your primary care physician.
Point of Service (POS)
This type of plan allows you to go outside the network for non-emergency care, but may result in a lower level of benefits being paid by the plan.