When it comes to your and your family’s health, health insurance is an essential consideration. It provides an important link between individuals and the health care system, helping manage the costs of medical care and access to medical services.

What Is Health Insurance and What Are the Different Types?

Health insurance is a contract between you and an insurance provider. You typically pay a monthly amount called a premium in exchange for reduced out-of-pocket costs for medical services. There are many types of health insurance to choose from, including the following common plans:

Health maintenance organization (HMO) plans require members to use networks of hospitals and doctors.
Preferred provider organization (PPO) plans are typically more expensive than HMOs but offer more flexibility for choosing your medical providers.
Point of service (POS) plans are similar to HMO and PPO plans; they require a primary care physician for referrals but may allow out-of-network care at a higher cost.
High deductible health plans (HDHPs) typically have lower premiums in exchange for higher deductibles, which is the amount you pay before insurance starts to cover medical expenses.
Medicare is a federal program for people 65 and over, and for younger people who meet specific criteria. There are multiple parts to this program to cover different aspects of medical care.

Which Health Insurance Plan Should I Choose?

When choosing a health insurance plan, consider whether family members will also be covered. Determine the coverage level you’re comfortable with, taking into account the age and health status of all insureds.

Think about where coverage may be available to you. Does your employer offer a health plan? Will you seek a plan from the Health Insurance Marketplace? Do you qualify for Medicare? Considering these aspects may help you narrow down choices.

Ultimately, consult a health insurance professional to explore available options. They can help you choose a policy to fit your needs and budget.