Frequently Asked Questions
While PPO plans can be more expensive than HMO plans, they offer out-of-network coverage that HMO plans do not offer. This gives you a choice of more doctors and specialists.
Short-term health insurance plans, also called short term limited duration plans, offer health coverage for people who may be in-between jobs, need coverage outside of the annual Open Enrollment Period and don’t qualify for a special enrollment period or are waiting to be eligible for Medicare. Typically, these temporary health insurance plans can cover you for as little as 30 days to a maximum of 364 days.
High-deductible health plans, or HDHP plans, can be any of the types of health insurance plans listed above (HMO, PPO, EPO or POS). However, these plans are specifically designed to be used in conjunction with a health savings account, or an HSA. An HSA is a bank account that allows you to save pre-tax money to be used exclusively for qualified medical expenses. Unused funds in an HSA account roll over every year, but you can’t use the funds outside of qualified medical expenses without paying a penalty. Because they are often used side-by-side with an HSA, HDHP plans have higher out-of-pocket costs but offer a lower premium.
Main features of HDHP plans:
- Higher deductible and out-of-pocket costs
- Lower premium payment
- A health savings account (HSA) to help pay for your care with tax-free money that rolls over each year
The best type of health plan for you will depend entirely on your specific financial and health care needs. For instance, if you currently use or expect to have more intensive care needs than just preventive services, the best type of plan for you might have lower out-of-pocket costs (especially a lower deductible and coinsurance) so you know what to expect to pay.
If you’re healthy and don’t expect to need much medical care outside of preventive visits, a plan with a higher deductible and a lower monthly premium could help you save money while still giving you the coverage you need to stay healthy.