Texas Health Insurance
Health Plan Options

They say things are bigger in Texas, and health insurance is no exception to this idea. There are many insurance companies whose specialize in providing health insurance coverage to Texans, so the burden falls on people to choose which health insurance plan works best for them. In some cases it is an employer doing the research and in other cases it is individuals who are purchasing personal health insurance. Either way, nobody should jump into a new health insurance policy without getting informed first.

What sort of health insurance plans are offered in Texas? There are many different plans which Texans can choose from, but generally the three most popular plans are the HMOs, the PPOs, and the POSs. Each plan has its own advantages and disadvantages and therefore people need to take each factor into account before deciding which health plan works best for them.

If a person needs a plan with the lowest monthly premiums, deductibles, and co-payments for office visits and prescription drug coverage then an HMO is the way to go. HMO stands for Health Maintenance Organization. This plan is well known for its restrictive policies and the often impersonal feel surrounding the plan. Although the lower costs can certainly make an HMO plan seem attractive the fact that patients are not allowed to see whatever doctor they want to and also the difficult nature which surrounds getting in to see a specialist makes HMOs open to ridicule. HMOs, however, do have the redeeming factor of allowing people who would probably not be able to afford health care otherwise to receive care through the plan.

For people with whom cost is not necessarily a big issue, or for people who don’t mind paying more for more flexibility in a health insurance plan, a PPO plan is best. PPO stands for Preferred Provider Organization. This plan allows for much greater flexibility because the patient gets to choose their own primary doctor and the wait to see a specialist is nowhere near as lengthy as with an HMO. The costs can be restrictive though, because PPO plans cost much more than an HMO for the monthly premium, deductibles, and co-pays for office visits and prescription drugs. The upside to the cost is that people using this plan are then eligible for an HSA (Health Savings Account) which is an interest-bearing, tax-deferred savings account which is used solely for medical expenses. Only health insurance plans which have higher deductibles are eligible for this type of account.

What’s the happy medium between the low costs of an HMO and the flexibility of a PPO? A POS plan takes the best aspects of the two other plans and creates a whole new one. POS stands for Point of Service. This plan combines somewhat lower costs than a PPO plan but somewhat greater flexibility than an HMO. In some cases a POS plan can be eligible for an HSA, just like a PPO. It depends on the annual deductible amount. Obviously all three plans have their merit; it just depends on what each individual needs for themselves and their family.