There are 5 main types of health insurance plans: PPOs, HMOs, POS's, Traditional Plans, and HSA's.

Here are the definitions of each plan type:

Preferred Provider Organizations (PPOs)
Under this program, an insurance company enters into contracts with selected hospitals and doctors to furnish services at discounted rates. As a member of a PPO, you might be able to seek care from a doctor or hospital that is not a preferred provider, but you will probably have to pay a higher deductible or co-insurance.

Health Maintenance Organizations (HMOs)
These organizations provide health care services directly to their members, who pay a fixed monthly fee to the HMO. These services include such things as hospital care, surgery and routine office visits. The HMO is an alternative to traditional health insurance because it provides actual services rather than just reimbursement for health care expenses. Enrollees usually pay a small co-payment for care or services they receive.

Point of Service (POS)
Health care plan that allows enrollees to choose whether to receive a specific service from a contracted preferred provider or a non-contracted provider. POS plans are a combination or either an HMO or PPO plan with a traditional indemnity plan. For the maximum level of benefits, the enrollee must consult their primary care physician prior to obtaining treatment or services.

Indemnity (Traditional)
With this plan the health insurance company pays all or a portion of the bills after services are received by the insured. Other characteristics of this kind of plan include: 1) no connection between the insurance company and the people who provide the health care; 2) no restrictions on the doctors or hospitals you must use to receive the health care; 3) a deductible may have to be paid before the policy begins to cover the expenses.

HSA (Health Savings Account)
A Health Savings Account is a tax-favored savings account, combined with a qualifying high-deductible health insurance plan. This combination can provide: