Types of Health Insurance

Finding the best health insurance plans for your employees can be challenging due to the massive number of options available. But finding the right plans for your teams will help with recruitment and retention, plus provide valuable peace of mind to your employees.

Read on for more information on the types of health insurance available for Texas residents.

The Basics

Health insurance plans by the leading providers usually come with different levels of benefits, deductibles, and co-pays, influencing the annual premiums you will pay. Basic health insurance plans may have lower premiums, but they typically offer fewer benefits and higher deductibles, while higher premiums will provide you with less out-of-pocket costs for a wide range of health services.

Different types of health insurance

The insurance providers will typically offer different types of health insurance.

Health Maintenance Organization (HMO) – HMO plans give you access to a network of doctors and hospitals, although many plans require you to select a Primary Care Physician (PCP). These plans are more budget-friendly as they offer lower premiums, have low or no deductibles, and fixed co-pays for doctor visits. Using a network gives you access to a wide range of medical services. However, there is little or no coverage should you need to use health providers outside of the network.

Preferred Provider Organization (PPO) – PPOs provide a greater flexibility level, as there are fewer restrictions to seeing providers outside the network. One significant advantage of a PPO is you do not require referrals from your PCP to see a specialist, which can save you time. Typically, PPOs come with higher premiums and usually have a deductible, but co-pays and co-insurance are lower.

Exclusive Provider Organization (EPO) – An EPO offers a much more extensive network of care providers than HMOs combined with some plans not requiring referrals to see specialists. The premiums tend to be higher than HMOs but lower than PPOs.

Alternate Funded Plans – These are plans that give employers much more flexibility that can be more cost-effective. Our team is happy to go into details of how these work and if they are a benefit for your company.

The details for all of these different plans can be a lot to digest. Fortunately, our expert team at SRC Financial can guide you through the entire process and help you pick the best plans for your business.

For more details about the various types of insurance plans, contact one of our friendly team today.