There are 5 different types of health insurance available in United States. The first one is the traditional health insurance and PPOs offer this plan. Point-of-service plans are offered by health management organizations or HMOs. It is a daunting task for the newcomer to select the right kind of insurance plan according to his individual and professional needs. Most people prefer taking traditional health insurance and they pay the bills every month. In case of any treatment or hospitalization, they are given some deductibles and they are inexpensive in most of the cases.

The average life span of human beings has increased and the insurance companies are trying their best to reduce their cost. PPO plans are modified to cover up with the amount of treatment if the patients stay within the network of prescribed hospitals and doctors. The treatment undertaken outside the network will be covered up partially. Staying within the network can minimize the premium amounts. POS plans also work in the same way as PPOs but it demands to have a primary care physician who can refer to any other specialists in case of emergency and treatments.

HMO plans are a combined version of PPOs and POS plans. This plan will not cover up any of the expense if the patient goes out of the network. A referral from the primary care physician is a must in this case and people tend to pay a less or even no monthly premium. HSAs can allow people to deposit money as a special non-taxed, interest gaining savings account, which is used for medical expenses. The savings account will help in reducing the high deductible amount. The beneficiaries must take proper care in analyzing the benefits of all kinds of plans and must choose accordingly.