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Most of you are not aware of the different health insurance policies. You might be depending on the insurance agents to be updated with the different health insurance policies.Possibly for such a reason there is a rise in price of different health insurance premium over time. This has led to a considerable fall of the health insurance market. So it’s high time we get introduced to the health insurance market.

• Indemnity Policies (Traditional Fee-for-Service Insurance)

• Preferred Provider Organization (PPO)

• Health Maintenance Organization (HMO)

• Multiple Employer Welfare Arrangements (MEWA)

• The Self-insured Employer-Sponsored Plans

1. Indemnity Policies (Traditional Fee-for-Service Insurance):

Advantage:

You can select a doctor or a hospital of your choice.

Disadvantage:

You would have to pay a deductible added to a portion of the medical bills from your own pocket.

2. Preferred Provider Organization (PPO):
Advantage:
Cheaper premium amount
You can select the doctor, hospital and specialist of your own choice.
Disadvantage:
The premium amount is more expensive than the HMO plans.

You would have to pay a deductible before you claim for the amount of your part.

3.Health Maintenance Organization (HMO)

Advantage: This is the cheapest plan.
You need not pay any deductibles. It concerns very little paperwork.
The insurance company would pay for all your doctor’s visit, prescription drugs, and hospital bills.

Disadvantage:
You would have to choose the doctor, specialist and hospital from the approved list that they provide.

4. Multiple Employer Welfare Arrangements (MEWA): MEWA is an benefit plan for the employees. It is regulated by the department of labour, under Employee Retirement Income Security Act (ERISA) .

Advantage:

It offers cheaper insurance coverage that the others.

5. The Self-insured Employer-Sponsored Plans:

Advantage:
Helps in tax subsidies
Demands low premium.

Disadvantage:
Only people under 65 years of age can opt for it.