Lady and Man riding bikes looking at each other.

Selecting a Policy

When you apply for cheap health insurance quotes, you will need to select the type of policy that is right for you. Here is a brief explanation of the most popular types of policies.

Health Maintenance Organization (HMO) Plan

An HMO policy is often very popular for those in the market for cheap health insurance because it typically offers the lowest premiums with the lowest out-of-pocket costs. Lower out-of-pocket costs mean that your financial responsibility for your healthcare expenses will be minimal. For example, you might have a $10 co-pay for doctor visits and prescriptions, as along as you visit the healthcare providers that contract with the HMO. On the down side, this type of cheap health insurance generally offers the least amount of flexibility and freedom of choice in your healthcare decisions.

Man smiling with three other old people looking.

Preferred Provider Organization (PPO) Plan

A PPO cheap health insurance policy is usually slightly more expensive than an HMO plan, but it affords the policyholder more choice in his or her healthcare decisions. With a PPO plan, you will receive financial incentives to visit healthcare providers that have arrangements with your insurance company. These providers are "preferred" or "in-network" providers. You are allowed to visit providers outside of your network, but you will incur higher out-of-pocket costs for these visits than with preferred providers. If you are looking for cheap health insurance that allows you to choose your healthcare provider, you might consider a PPO plan.

Indemnity Plan

An indemnity plan is a more traditional form of cheap health insurance that is also sometimes referred to as a reimbursement plan. Under this type of cheap health insurance coverage, your insurance company reimburses you for medical expenses regardless of which providers you see. Different indemnity plans will calculate your benefits differently. If you select an indemnity plan when shopping for cheap health insurance, you might be reimbursed for your actual expenses, for a percentage of your actual expenses, or for a specified amount per day for a certain number of days. The most common type of indemnity plan usually pays for a percentage of your actual charges. For example, your cheap health insurance plan might pay for 80% of your healthcare charges, while you are responsible for 20%. Because you take on more financial responsibility for your healthcare expenses with this type of cheap health insurance, you can typically find lower premiums as long as you can absorb the higher out-of-pocket costs. If you have questions that you are still curious about, check out the frequently asked questions section for even more information.