HSA stands for Health Savings Account although many people use the term to describe a type of health insurance that is necessary to open a health savings account. The two are tied together but you are not required to open a health savings account if you purchase a qualified high deductible health plan (QHDHP)

The Health Insurance:
Otherwise known as Qualified High Deductible Health Plans, these are generally high deductible health insurance plans with no up-front benefits except for a possible physical exam. Another common feature with these plans is that once you meet your deductible the insurance company pays 100% of covered expenses after your deductible. When you choose the 100% co-insurance your maximum out of pocket expense is equal to your deductible and often lower than on the traditional co-pay plans. Not all health insurance plans are “HSA compatible”. If this type of insurance interests you please view our available plans page to see which plans comply.

The Savings Account:
Any money you put in this account is tax deductible and can be written off when you file your tax return. Money from this account can be used on anything health related, including doctor visits and any expenses that go towards your deductible. It also can be used on dental visits, vision checkups, a chiropractor, acupuncture, and more.

Consumer Driven Health Insurance
This is another term for HSA style plans because using HSA style health insurance is a cost-effective way of obtaining catastrophic coverage while limiting your maximum out of pocket expense. Consumers asked for this and it is becoming increasingly popular. If this sounds like a good fit for your situation, it is a good idea to look into low cost accident insurance to compliment it.

PPO stands for “Preferred Provider Organization” which is a network of doctors specific to each carrier. It also is commonly used to describe a type of insurance which is the traditional co-pay type of coverage. Subscribers have a wide choice of doctors in network but if you decide to go out of network you will pay more. You do not need a referral to see a specialist.

You pay the specific doctor and drug co-pays, such as $20 and then the insurance company pays the rest for those services. For catastrophic needs such as ambulance, hospital, surgery, etc. you pay the deductible and then the insurance company pays a percentage (often 80%) and you pay the remaining percentage (often 20%) until you reach your out of pocket maximum. After that the insurance company pays 100% of covered expenses.

It’s a good idea to focus on out of pocket maximums and what the policy covers when comparing plans as it’s the truly catastrophic events that can cause financial stress for your family.

Your premium will be higher for this type of coverage than for the catastrophic policies assuming a similar out of pocket maximum.

HMO stands for Health Maintenance Organization and has a much smaller network than most PPO plans.

Subscribers are required to have a primary care provider (PCP) who co-ordinates all your care. If you want to see a specialist you need to get a referral from your PCP or the expense is not covered. In most cases the referral will be to a doctor inside the HMO network. Except in an emergency, if you go to a Hospital, doctor, or diagnostic facility outside of the network it will not be a covered expense.

Costs for these plans are generally higher and co-pays are usually minimal as are out of pocket expenses for in-network care.