Different Types of Medical Insurance

Medical insurance comes in a variety of types and specified conditions. There is coverage for most everything to coverage for prescription drugs only. Most policies are determined by the amount of money your or your employer are willing to pay.

Preferred Provider Organization

• Preferred provider organization, or PPO, is a type of insurance that allows you to see any medical provider you want. If your physician or hospital is in network, meaning there is a contract between the provider and the insurer, you will receive a discount. If you use an out-of-network provider, you are responsible for the total cost after your insurer pays part of the bill.

Health Maintenance Organization

• Health maintenance organization, or HMO, is a restricted type of medical insurance. You are assigned a specific physician, and the insurer decides what types of services are available to you.

Major Medical

• Major medical insurance covers large amounts only, such as hospitalization. This type of insurance usually starts paying on surgeries or recovery from an illness or injury through inpatient or outpatient hospital care. This insurance can be part of a lower-cost PPO or a high-deductible plan.

Short-Term Medical

• Short-term insurance is for people who are in between coverage. This type of insurance is used if you lose your job but still need insurance. It usually covers six to 12 months. This is a less-expensive type of insurance than COBRA after you lose a job.

Long-Term Care

• Long-term care insurance is paid over time in advance for future long-term needs, such as nursing homes or home health care.