When it comes to health insurance, you’ve got options. Whether you’re browsing through your state’s Marketplace or consulting with an insurance broker, you’ll encounter health plans categorized by their level of benefits: bronze, silver, gold, and platinum. Each level offers a different degree of coverage, with bronze plans providing the least coverage and platinum plans offering the most. Additionally, if you’re under 30, you may qualify for a high-deductible, catastrophic plan.
So, what sets these plans apart? Each plan covers a set percentage of costs for the average enrollee, although the specifics can vary. Deductibles— the amount you pay before your plan covers 100% of your healthcare expenses—also differ across plans, generally with lower-cost plans having higher deductibles.
Here’s a breakdown of the coverage for each plan level:
- Platinum: Covers an average of 90% of your medical costs, leaving you responsible for 10%.
- Gold: Covers an average of 80% of your medical costs, with you paying 20%.
- Silver: Covers an average of 70% of your medical costs, leaving you responsible for 30%.
- Bronze: Covers an average of 60% of your medical costs, leaving you responsible for 40%.
- Catastrophic: These plans kick in after you’ve reached a very high deductible ($8,700 in 2022). They also cover the first three primary care visits and preventive care for free, even before you’ve met your deductible.
In addition to these coverage levels, you’ll also come across different insurance brands offering various types of plans. Some well-known national brands include Aetna, Blue Cross Blue Shield, Cigna, Humana, Kaiser, and United.
These insurance brands typically offer one or more of the following common types of plans:
- Health maintenance organizations (HMOs)
- Preferred provider organizations (PPOs)
- Exclusive provider organizations (EPOs)
- Point-of-service (POS) plans
- High-deductible health plans (HDHPs), which may include health savings accounts (HSAs)
Understanding the differences between these plan types can help you select one that aligns with your budget and healthcare needs. To get detailed information about a specific plan offered by a brand, review its summary of benefits.
For example, an HMO provides all health services through a network of providers and facilities, offering less freedom to choose your healthcare providers but typically requiring less paperwork. On the other hand, a PPO offers more flexibility in choosing providers but may involve higher out-of-pocket costs for out-of-network care.
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Similarly, an EPO combines aspects of both HMOs and PPOs, offering moderate freedom to choose providers while not covering out-of-network care. A POS plan blends features of HMOs and PPOs, providing more freedom to choose providers than an HMO but less than a PPO, along with a primary care doctor who coordinates care.
If you’re under 30 or looking for lower premiums, you might consider a catastrophic health plan or an HDHP. These plans typically have higher deductibles but lower premiums and may be paired with an HSA to help cover healthcare costs.
In conclusion, exploring the various health insurance options and understanding their features can empower you to make an informed decision that meets your healthcare needs and financial situation.