Different Types of Hospital Insurance

With the risk of accidents and illnesses these days due to a vigorous, fast and unsafe lifestyle, the modern family needs hospital insurance. When you are in a situation where you or your immediate family member needs to be confined in a hospital, you will want to have all or most of the medical expenses footed by an insurance company. Hospital insurance can do just that.



There are different types of hospital insurance. They provide various options in terms of price from low cost to minimal coverage and the most costly policy that covers everything. One of the least costly health insurance is the catastrophic health insurance where you will pay most of the hospital expenses first before the insurance company starts to pay. There is also a ceiling for this type of policy where the company will only pay a certain amount. This insurance is only for those people who can financially handle just the usual hospitalizations and illnesses.

Another type of hospital insurance is the short-term health insurance which is bought for a certain period. This type of coverage includes catastrophic and comprehensive cases and does not include pre-existing medical illnesses. Such a policy also does not cover pregnancy and childbirth.

The Preferred Provider Organization or PPO is another health insurance that fully covers medical treatment as long as this is provided by the hospital or medical practitioner that belongs to the said organization’s health care providers’ network. Only a minimal rate is given for any treatment done outside of the network while the difference shall be shouldered by the policy-holder. This type of insurance is actually medical care given with a discount. To avail of this insurance plan, it is necessary to be approved by the organization first.

The most controversial health insurance is the one given by Health Maintenance Organizations or HMOs. Because holders are required to go only to certain doctors when availing of out-patient and non-emergency medical treatments, premiums are significantly lower. This insurance covers physical examinations, mammograms and immunizations and other preventive procedures. The controversy behind such insurance is that doctors enrolled in this program get monetary benefits for lessening the cost of services they provide to patients who are plan-holders. The insurance company pays the doctor a flat monthly fee for every patient who visits him whatever medical services is availed of.

Another hospital insurance is the full-service health insurance that can be costly. It covers any type of sickness and treatment from whatever hospital. Deductibles are also high and this will depend on the policy the holder paid for.

Low-income employees and retirees can avail of a public health insurance where the company will only shoulder a standard rate when the patient is hospitalized. A certain percentage of the room and board, laboratory tests, procedures, doctor’s fees and medicines are covered.

The hospital plan is another insurance where all expenses are paid upon admittance to the hospital until discharge, including take-home medicines. Finally, the hospital cash back plan is a scheme where the holder receives a certain amount of money for every day he or his beneficiary spends in the hospital. The cash will be deposited in his bank account and the amount shall depend on the package he has chosen.

These are the different types of health insurance plans that you can avail of which would be a big help should you or your beneficiary get sick.