Types of Medical Policies

PPO (Preferred Provider Organization) – a managed care organization of medical doctors, hospitals, and other healthcare providers who have covenanted with and insurer or third-party administrator to provide healthcare at reduced rates.

POS (Point of Service) - a plan that combines characteristics of both an HMO and a PPO. The POS is based on the basic managed care foundation which lowers medical costs in exchange for a more limited choice. A member of a POS plan is typically required to choose a primary care physician and chosen from within the healthcare network.

HMO (Health Maintenance Organization) – a type of managed care system that covers only healthcare rendered by those doctors and other professionals who have agreed to treat patients in accordance with HMO guidelines and restrictions.

H.R.A.’s (Health Reimbursement Arrangements) – IRS sanctioned programs that allow employers to reimburse medical expenses paid by participating employees which in term yield a tax advantage to offset healthcare costs. They are usually initiated by the employer and serviced by a third-party administrator or plan service provider. Employee’s HRA accounts can be rolled over from year to year like a savings account. The employer decides if the funds are rolled from year to year and how much.

H.S.A.’s (Health Savings Accounts) – a tax advantage medical savings account available to an employee or individual who are enrolled in a HDHP (High Deductible Health Plan). They are owned by the individual and it allows them to put money in a bank account to help pay for medical expenses when applicable.