Updated on January 11, 2019
The Difference Between An HSA And Health Insurance
What are the differences between different Health Insurances?
Before we tackle those differences, let’s tackle what are the types of health insurances that exist around the medical world:
Preferred Provider Organization or PPO
No need to choose a primary care physician and you can go to any health care clinic without requesting a referral from your physician. Having an out of network benefits can prove beneficial in terms of lower cost compared to in-network premiums.
Exclusive Provider Network or EPO
Similar to PPO in terms of network plans, and also you can go to any health center without requesting a referral from physicians. The difference between the two is that EPO plans do not cover the payment of any out of network physicians, laboratories, hospitals, and health care clinics unless it is considered an emergency. EPO plans are much cheaper than PPO plans.
Health Maintenance Organization or HMO
Similar to EPO plans, they also do not have an out of network benefits. Anything that you do in an out of network facilities or physicians, you will have to pay all the cost by yourself. There are two exceptions to these conditions; in case of emergency and pregnant women don’t need a referral for an in-network physician
Point of Service
A POS is a combination of PPO and HMO plan. They cover some out of network physicians and facilities but you need to pay more and they require a referral from a PCP before seeing a specialist
Health Savings Account or HSA
HSA plans are HDHP enrolled the only privilege. It is a tax-free account that is commonly funded by salary deductions. The contributions to the premiums arenot taxable and can be used to any eligible medical, dental and visual expenses. Employers often make contributions to the premiums although they are not required to do so. Making your money roll over a year it does not spend is an HSA health insurance benefit.
Flexible Spending Arrangements or FSA
Similar in aspects with a health saving account except FSA does not roll over your money into the next year.