There are many options when considering the purchase of affordable health insurance. However, there are two basic types of medical coverage readily available to consumers.

Health maintenance plans often limit choice in exchange for lower costs. Three of the most popular forms are HMO, POS, or PPO policies. A Health Maintenance Organization (HMO) requires insurance holders to attend a physician within the HMOs network. With a Point-of-Service plan, participants can see outside physicians, but an additional fee is charged. And the holder of an insurance Preferred Provider Organization (PPO) have the most flexibility, but pay less if participation remains within the network.

Fee-for-service, or indemnity, health plans offer the most flexibility. The policy reflects the insured’s choices of coverage and deductibles, which reflects the costs. Choices which make the health insurance cost affordable.