Types of Health Plans

• Four main types of health plans include the following:
  
  Health Maintenance Organizations (HMO): The HMO insurance company has contractual arrangements with health care providers, and patients typically must see only those providers within the network and must obtain a referral to see a specialist.
  
  Preferred Provider Organization (PPO): A PPO also contracts with health-care providers to form a network; however, patients typically don't have to get a referral to see a specialist and may see providers outside the network.
  
  Point-of-Service Plans (POS): A POS plan is somewhat of a combination of an HMO and PPO. It also has a provider network but allows more freedom than an HMO.
  
  High Deductible Health Plan (HDHP): The Centers for Disease Control and Prevention reports that in 2009, an HDHP is "a private health plan with an annual deductible of not less than $1,150 for self-only coverage or $2,300 for family coverage. The deductible is adjusted annually for inflation."
  
  Other plans include consumer-directed health plans (CDHP), health savings accounts (HSA) and flexible spending accounts (FSA) for medical expenses.
  
  

Cost by Health Plan Type

• The Kaiser Family Foundation reports in its 2010 annual health benefits survey that individuals pay an average of $421 a month or $5,049 annually, while families pay $1,147 a month or $13,770 a year, for all types of health plans. The following is a breakdown of average cost by type of plan:
  
  HMO: $428 (monthly), $5,130 (annually) for single coverage; $1,177 (monthly), $14,125 (annually) for family coverage.
  
  PPO: $427 (monthly), $5,124 (annually) for single coverage; $1,169 (monthly), $14,033 (annually) for family coverage.
  
  POS: $437 (monthly), $5,239 (annually) for single coverage; $1,101 (monthly), $13,213 (annually) for family coverage.
  
  HDHP/Savings Option: $373 (monthly), $4,470 (annually) for single coverage; $1,032 (monthly), $12,384 (annually) for family coverage.
  
  Worker contributions increased for both single and family coverage in 2010 over 2009. "On average, workers with single coverage contribute $75 per month, and workers with family coverage contribute $333 per month towards their health insurance premiums," the Kaiser Family Foundation says in its report.
  
  

Projected Per Capita Health Care Expenditures

• In 2010, the U.S. Department of Health and Human Services Centers for Medicare and Medicaid Services estimated that personal health care expenditures per capita were $6,909. It projects expenditures to increase by 38 percent to $11,077 by 2019. Out-of-pocket expenses, those not covered by insurance or the government, will rise 32 percent from $942 to $1,390, from 2010 to 2019. The following is a breakdown of annual expenditures by type of service:
  
  Dental: $348 (2010), $539 (2019)
  
  Home Health Care: $249 (2010), $459 (2019)
  
  Hospitals: $2,545 (2010), $4,105 (2019)
  
  Physician & Clinical Visits: $1,728 (2010), $2,634 (2019)
  
  Prescriptions: $839 (2010), $1,367 (2019)
  
  Other, including medical equipment: $1,200 (2010), $1,973 (2019)