Types of Healthcare Coverage

When you buy your health insurance online, you will have a wealth of policies from which to choose. Here is an explanation of the different types of policies to help inform your decision.

Health Maintenance Organization (HMO) Coverage

An HMO is one coverage option you will have when you buy your health insurance online. An HMO is a system of healthcare that shares the financial risk involved in providing medical services to policyholders. Typically, HMO's serve a particular geographic area and do so in return for a prepaid, fixed fee. If you want to you buy your health insurance online and are looking for a plan with minimal premiums, an HMO is a good choice. However, HMO's typically offer consumers the least amount of choice in the selection of their healthcare providers.

Preferred Provider Organization (PPO) Coverage

A PPO is a healthcare system that provides healthcare at discounted prices by encouraging members to use healthcare providers who are in the PPO's network. This means the providers contract with the PPO at a discount. Thus, when you buy your health insurance online and opt for a PPO plan, you will receive financial incentives to stay with in-network providers. However, you still have the option to use out-of-network providers, though your coverage will pay less of the cost associated with these services. As you buy your health insurance online, keep in mind that PPO plans tend to be more expensive than HMO plans, but they offer a greater degree of choice and flexibility in your healthcare decisions.

Indemnity & Traditional Coverage

Indemnity plans, also called traditional or fee-for-service insurance, offer policyholders the most choice and control over their healthcare. If you buy your health insurance online and select this type of plan, you will be able to choose any healthcare provider, but you maximize your benefits when you use a provider affiliated with your insurer. Indemnity plans tend to be the most expensive because they require you to assume the most financial risk for your healthcare. Conversely, they also offer the most freedom of choice with regard to your healthcare.

Point-of-Service (POS) Coverage

This option allows policyholders to choose the medical services they require and decide whether they will go to a provider that participates in their insurer's network or select out-of-network care. When you buy your health insurance online, keep in mind that this type of coverage is most similar to an indemnity plan or traditional health insurance.