Three Different Types of Health Insurance Plans
There are three basic category classifications to choose from when you compare health insurance coverage. Types include the predictable Copayment Plans, the more affordable Deductible Plans, and the often least expensive HSA-qualified High Deductible Health Plans (HDHP). Continue reading to learn more information about these three forms of medical coverage and the types of benefits that these plans include.
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Copayment Plans
Copayment Plans are the most popular of the different kinds of health insurance plans for those who can afford more expensive coverage. They offer the most comprehensive benefits. If you want the peace of mind of being able to avoid the guesswork of medical bills and keep your expenses for the actual services at an affordable level, this type of health insurance plan would be worth a look. This form of medical coverage carries the highest premium, but if you tend to utilize the services often, it may save you money in the long run.
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Standard Deductible Plans
Pricing is dependent on the size of the deductible. These middle-of-the-road to low cost medical plans often include some common benefits like office visits and prescription drug coverage that are not subject to the deductible. The deductible would apply to benefits other than doctor visits and prescription drugs. The combination of first-dollar benefits for the frequently-needed services and the competitive rates make these types of health insurance plans a popular choice for many.
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HSA High Deductible Health Plans
This type of health insurance is an altogether different species than the copayment kind of coverage. It is cheap, no frills coverage that could enable you to save money on your federal taxes. These plans are the opposite of the Copayment Plans. Under the Copayment Plans, most if not all services will cost you a discounted, flat fee at the onset of your policy period. With an HSA Deductible Plan, however, most if not all of the medical insurance benefits will be out-of-pocket until what you have paid adds up to the amount of the deductible. Then, the plan kicks in and future benefits are either discounted or free. Where the HSA’s win over the Copayment Plans is in the area of premium. HSA premiums are substantially lower. Another advantage to this type of health plan is that you can open a Health Savings Account. Any money you put into this account is tax deductible on your federal taxes and is earmarked for health related expenses. If you choose this type of plan, you don’t have to open an HSA, but you have the option. You can open the HSA at Wells Fargo or the financial institution of your choice.
| Typical Costs for Services on 3 Plan Types | ||||
|---|---|---|---|---|
| Copayment Plans | Deductible Plans | HSA Deductible Plans | ||
| Office visits | $5-$50 | $20-$50 | $0- $40 after deductible | |
| Prescriptions | $10 generic $35 brand name | $10 generic $35 brand name | $0 or $10 generic / $35 brand name | |
| Emergencies | $100 - $150 | $100-$150 after deductible | $0-$150 or 30% | |
| Hospitalization | $200-$500 per day | $100-$500/day after deductible | >$0-$400 per day after deductible or 30% after deductible | |
| Annual out-of-pocket | $2500-$3500 | $2500-$7500 | $3000-$10,000 | |
The “Cost for Services” listed above are general norms and may not be true for all plans that fit in that category. For specific amounts on a particular plan, see the plan benefits related to that plan. Also, some plans do not include prescription drug coverage
