What Are Your Health Insurance
Choices?
There are many different types of health
insurance. Each has pros and cons. There is no one "best"
plan. The plan that's right for a single person may not be best for
a family with small children. And a plan that works for one family may
not be right for another.
For example, if your family includes just
two adults, it may be less expensive for each of you to have individual
coverage than for just one of you to have a family plan. If you have
children, or if you might have children soon, you need a family plan.
Because your situation may change, review your health insurance regularly
to make sure you have the protection you need.
Choosing a health insurance plan is like
making any other major purchase: You choose the plan that meets both
your needs and your budget. For most people, this means deciding which
plan is worth the cost. For example, plans that allow you the most choices
in doctors and hospitals also tend to cost more than plans that limit
choices. Plans that help to manage the care you receive usually cost
you less, but you give up some freedom of choice.
Cost isn't the only thing to consider when
buying health insurance. You also need to consider what benefits are
covered. You need to compare plans carefully for both cost and coverage.
Although there are many names for health
insurance plans, the information here groups them as three main types:
- Fee-For-Service (or Traditional Health
Insurance)
- Health Maintenance Organizations (or
HMOs)
- Preferred Provider Organizations (or
PPOs)
