Cheap Health Insurance Quotes and the HMO, PPO, FFS-indemnity plan, and the POS
When shopping for cheap health insurance quotes, you will be receiving pricing for particular sorts of health insurance plans. Each plan will offer slightly different sets of benefits, and each quote will represent a plan with slightly different cost sharing arrangements. Cost sharing refers to what you pay as your "share" of the bill. In many cases, for example, you would pay a fixed copayment for a primary care doctor visit, and another fixed copay for a specialist visit.
HMO--Your cheapest quotes will probably be for HMOs. An HMO is a health maintenance organization. An HMO contracts with doctors, hospitals, and other medical providers to form a sort of network. As a member of an HMO, you are required to use the providers in that network. You pay the HMO a certain amount of money that is either a fixed copay or a coinsurance based on their approved amount for the service you received. Coinsurance is always a percentage, whereas a copayment is always a fixed amount.
PPO--The quotes for a PPO may not be as low as for an HMO as the level of coveage is generally considered to be a little greater. A PPO is a preferred provider organization. A PPO is similar to an HMO in that there is a network of medical providers that you can use. However, the PPO does not require you to use that network and allows you see doctors and go to hospitals out of network. Normally, you do not need a referral to see doctors out of network. but going out of network costs you more. Be sure you understand the charges when researching PPO plans. Also, if you already have doctors you rely on, be sure to ask them if they participate with the insurance plans and companies you are gathering information on.
POS--A POS is a point of service plan. A point of service plan is very much like an HMO except that POS doctors can refer you out of the network of providers to see a specialist. In a POS, you would not refer yourself, and if the plan does refer you out of the network, you pay more for the service and may, depending on the policy, pay the entire bill yourself.
FFS--An FFS or indemnity plan, is a fee for service plan. In a fee for service, each service you receive has a fixed price, and you are billed by the service. Thus, your doctor or hospital would charge the insurance company for each service you receive. The insurance company then reimburses the health care provider based on a fee schedule for each medical service. Once the insurance company approves the charges and determines its payment to the provider, it then determines what you owe. The amount determined by the insurance company should correspond to the bill you get from the doctor or other provider.
In a fee for service plan, you are not required to use a network of providers. You choose your own health care providers, and because you make the decision about who you see and where you go, there is usually no need for a referral, though that would be an important question to ask the insurance company. The only limiting factor on who you see is whether or not the provider is willing to submit claims and accept payment from the insurance company.
There is more to low cost health insurance quotes than may appear to immediately meet the eye. You should now you have a better idea of what that quote is for. when shopping for health coverage, be sure to look thoroughly into the options available to you. Always do your homework before sitting down with an agent to discuss your options. Remeber, your health insurance quote represents a package of insurance services, and it is vital that you to understand the relationship between the quote and the services you may be purchasing.
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