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Do Health Insurance Plans sound like Alphabet Soup to you?

Barb Hunt

Ever get confused talking about health insurance plans? Picking the perfect plan for your health needs can be very difficult. There are many different plans to choose from. Here’s some definitions to make picking the perfect plan much easier!

HMO or Health Maintenance Organization

HMO plans offer a range of services within a specific network of providers

You can only use/see the providers contracted with the HMO plan

HSA or Health Savings Account

An individual’s personal savings account only used for medical expenses with pre-taxed dollars

Only used for high deductible plans

Penalties may apply if the money in the savings account is used to pay for things other than  qualifying medical expenses

PPO or Preferred Provider Organization

With this type of plan, you’ll have to use doctors and hospitals that are on the health insurance companies’ list of preferred providers

POS or Point of Service

POS plans combine aspects of both HMO and PPO plans

May be required to choose a primary care physician then get referrals for specialists

EPO or Exclusive Provider Organization

While on an EPO plan, you can only use the doctors and hospitals within the EPO network and cannot go outside of the network for care

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