Key Points
- There are 7 types of health insurance plans
- HMO and PPO are the most common options
- employer plans offer lower costs
- Private plans suit, freelancer, and self-employed
- HDHPs work best for the healthy individual
- PPO plans provide the most flexibility
- Always compare the cost and the coverage before choosing a plan
Choosing the right health insurance plan can feel sometimes very confusing, especially when there are so many options available. There are so many plans, and the truth is no single plan can fit everyone.
In the United States, health insurance plans are specially designed for different needs, budgets and lifestyles. Some plans can focus on the flexibility, while others can on lower cost, and some are provided by the employers or the groups.
We gathered the information of all 7 types of health insurance plans. In this guide, we will explain all of the types to you and compare their features and also help you to understand which option can work best for you.
Health Insurance Plans – Simple Understanding
Health insurance plans are agreements between you and an insurance company. You have to pay a monthly premium, and the insurance company will help to cover the medical costs by doctor visits from hospital days, prescriptions, and preventive care.
There are different types 7 types of health insurance plans, each works in a slightly different way. Understanding all these differences can help you to avoid the surprises and save money.
The 7 Types of Health Insurance Plans in USA
As we discussed, there are 7 types of health insurance plans, and below are the commonly available in the United States. Let’s discuss each and get a better understanding of which is the right fit for you.
Health Maintenance Organization (HMO)
HMO plants are one of the most common and affordable options from 7 types of health insurance plans that are available in the United States.
The key features include
- lower monthly premiums
- Must choose a primary care physician
- Referrals required to see the specialists
- Care limited to in network providers
This plan is best for the people who want lower cost and don’t mind the limited provider choices. HMO plans are often included in types of employer health insurance plans because of their affordability.
Preferred Provider Organization (PPO)
BPO plans offer more flexibility as compared to the HMO plans. Here are some of the key features.
- No referral needed
- Can see out of network providers
- Higher premium and deductibles
- More provider freedom
This plan is best for the people who want choice and flexibility, especially those who travel often. PPOs are often considered as the best type of health insurance plan for flexibility.
Exclusive Provider Organization (EPO)
EPO plans are the mix between HMO and PPO plans. The key features include.
- No referral required
- Must stay in network
- Lower premiums than PPO
- No coverage outside network, except the emergency
This plan is best for the people who want flexibility without high cost. EPOs are becoming more popular among the types of private health insurance plans.
Point of Service (POS)
POS plans combined the features of HMO and PPO plans. The key features include.
- Primary care doctor required
- Referrals for specialists
- Can see out of network providers at high cost
- Moderate Premiums
This plan is best for the people who want out of network coverage, but they still want to manage care. This is one of the different types of health insurance plans offered by the employers.
High-Deductible Health Plan (HDHP)
High deductible health plans come with lower premiums and higher deductibles. The key features include.
- Low monthly premiums
- High out-of-pocket costs
- Often compared with the health saving accounts
- Tax benefits
This plan is best for the healthy individuals who don’t visit the doctor often. HDHPs are frequently included in types of proper health insurance plans.
Catastrophic Health Insurance
Catastrophic plans are specially designed for emergencies. Here are the key features.
- Very low premiums
- Extremely high deductibles
- Covers important health benefits, after deductibles
- Limited routine care coverage
The plan is best for the young, healthy individuals or people who are under 30. This is one of the three types of health insurance plans often discussed for the minimal coverage needs.
Group Health Insurance Plans
Group plans are often provided by the employers, unions or any other organizations. The key features includes
- Lower premium due to the group pricing
- Employers often pay part of the cost
- Covers the employees and sometimes families
- Includes HMO, PPO or EPO options
This is best for the employees who are looking for affordable and comprehensive coverage. These are the most common types of employer health insurance plans in the US.
Types of Private Health Insurance Plans
Private health insurance include the plans that are purchased individually or employers can include
- HMO
- PPO
- EPO
- POS
- HDHP
Two Types of Health Insurance Plans: Public vs Private
At a high level, there are two types of health insurance plans that are public health insurance and private health insurance
Public health insurance includes Medicare, Medicaid and CHIP.
While the private health insurance can include the employer sponsored plans and the individual marketplace plans.
Compare Types of Health Insurance Plans
Let’s have a quick look at the table so that it will help you to compare the types of health insurance plans easily and understands what type of health insurance plans are there for you.
| Plan Type | Cost | Flexibilty | Referrals needed |
| HMO | low | low | yes |
| PPO | high | high | no |
| EPO | medium | medium | no |
| POS | medium | medium | yes |
| HDHP | low | medium | no |
| Catastrophic | very low | low | no |
| Group Plan | low | varies | depends |
How to Choose the Best Health Insurance Plan
Whenever you are deciding, there are so many different types of health insurance plans in USA you have to consider the following things
- Always consider your monthly budget
- Frequency of doctor visits
- Preferred hospitals or doctors
- Prescription needs
- Family coverage
Summary
Understanding the 7 types of health insurance plans will help you a lot and make you confident to take the decisions about your health and finances. No matter if you are choosing between three types of health insurance plans, you are looking at types of health plans, or exploring the private options. Always make sure that knowledge is key and you have to search before buying any type of policy.
Remember to take time to compare the benefits, cost, and coverage. The right plan can protect your health and your wallet for years to come.
Insure Omni helps you to compare the 7 types of health insurance plans and find coverage that fits your life and budget. Get started with Insure Omni today.
