The US healthcare system offers a range of health insurance options, from low-cost catastrophic insurance to expensive all-inclusive policies. Short-term insurance may not cover pre-existing conditions, while HMOs limit which doctors patients can see. Full-service insurance covers all illnesses, while Medicare/Medicaid is available to retirees and low-income individuals.
The US healthcare system comes with a large variety of health insurance options. Options span the spectrum from low-cost, minimal coverage, to expensive all-inclusive policies.
Catastrophic health insurance is among the least expensive forms of health insurance. Deductibles, the amount the individual pays out of pocket before insurance begins paying out, are usually high for these types of policies. There may also be limits on the amount the policy will pay out if you get sick. These policies are only suitable for people with the financial means to manage routine hospital admissions and illnesses.
Short-term health insurance is similar to term life insurance in that it can only be purchased for a specific period of time. The coverage provided by the policies varies from catastrophic to comprehensive, with the latter considerably more expensive. Short-term health insurance often comes with stringent qualifying procedures and may not cover pre-existing medical conditions. In particular, pregnancy and childbirth are not usually covered by these policies.
A Preferred Provider Organization (PPO) is a health insurance plan in which medical treatment is fully covered when provided by a doctor or hospital in the PPO’s network of health care providers. Treatments carried out outside the network are also covered, but at a reduced rate. Policyholders are responsible for any differences if they seek out-of-network treatment. PPOs are essentially a form of group discounting of health insurance; by maintaining administrative control over a group of doctors and hospitals, PPOs are able to provide medical care at a discount. PPOs generally require prior approval before allowing major medical services.
Health maintenance organization (HMO) health insurance severely limits who a patient can see for non-emergency medical services. The benefit is a significantly lower premium. HMOs have generated considerable controversy, as in many plans, doctors receive financial incentives to reduce the amount of medical services provided to patients. One method of doing this has been to pay doctors a fixed monthly fee for each patient, regardless of what treatment they need. HMOs tend to cover more preventative procedures such as vaccinations, mammograms and doctor visits.
Full-service health insurance is also widely available, at considerable cost. These policies cover all illnesses, allow for treatment virtually anywhere, and come with deductibles as high or as low as policyholders are willing to pay. At the other end of the health insurance spectrum, Medicare/Medicaid is a form of public health insurance available to retirees and low-income individuals.
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