 Understanding the Terminology of Health Insurance Plans
 Health Maintenance Organization (HMO)
– is a type of health insurance plan that uses a managed care system. An individual or family receives a
wide-range of health benefits for a predetermined fee. There is a limited network of physicians and hospitals that often are found in one place, known
as a service center. This prepaid plan typically offers a co-pay per office visit that is around $10 to $25.
Preferred Provider Organization (PPO) – is a health insurance plan that works with a selected group of independent healthcare providers. Recipients of
this type of plan have more choices among doctors and hospitals. As an example, when using a healthcare provider within the network, 90% of the fee
is typically reimbursed, but only 60% when using a non-network physician. Health Savings Account (HSA)
– is a trust account created exclusively to pay for the account holder's qualified medical expenses. The annual deductible of your health insurance plan must meet a minimum dollar amount
in order to qualify for this account. There are many tax advantages to owning a HSA. Check with your tax advisor or
contact Wendt Family Insurance to determine if this right for you.Fee-for-Service Plan – is a traditional type of health insurance plan that allows the recipient to choose any
type of medical provider. Once the insured reaches their set deductible for the year, then the Fee-for-Service plan will pay a percentage of your bill, typically 80%. The remaining 20% is known as coinsurance. Managed Care
– is a type of health insurance plan that provides health care services at a reduced rate. To receive the discounted rate, members most follow specific rules and regulations.
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