When it comes to the types of insurance plans, the options are dizzying. But don’t fret! We’re here to walk you through it.

When it comes to the types of insurance plans, the options are dizzying. But don’t fret! We’re here to walk you through it.
Forget finding the quietest bathroom in the office or the best coffee shop for a quick midday pick-me-up. When you start a new job, one of your most important tasks is picking a health insurance plan.
There are numerous options, and it’s hard to keep them straight. (Which doesn’t belong: HMO, PPO, POS, BYOB?). We’re here to guide you through the sea of acronyms, deductibles, referrals, and more.
Start by assessing your health, lifestyle, budget, and individual and family needs. Some considerations:
But hold on! Before you sign up for a plan, check if your current doctors, clinics, and hospitals are part of the plan’s network.
Now, let’s dig into the jumble of letters that represent the types of health insurance plans.
A high-deductible health plan is an alternative to traditional insurance plans. It features lower monthly premiums but higher out-of-pocket costs and annual deductibles. (In-network preventive care is always fully covered because that’s the law babbyyyy.) You pay out-of-pocket expenses until you hit your annual limits, and then the plan pays for 100% of covered services.
The upside to HDPDs: You can combine an HDHP with a health savings account (HSA), which allows you to save money pre-tax for qualifying medical expenses, including deductibles, copays, coinsurance, or non-preventative care before you reach your deductible. You can only pair an HSA with an HDHP.
TL;DR: An HDHP can be a good choice if you’re in good health, don’t take regular medications, and don’t foresee needing any major medical procedures or treatments.
After digesting all of this (bonus points if you’ve made it this far), you may wonder why you should choose a health plan at all, let alone what’s better between a PPO and HMO.
Start by making a list. (We love lists.) Write down your family’s doctors, medications, and medical conditions. Also assess your financial ability to pay premiums, copays, and deductibles, and possibly out-of-pocket for care. Your answers should guide your selection.
Here are a few scenarios:
One more important point: People often ask their HR reps, “Can I change my health insurance plan mid-year?” Typically, you can only make changes mid-year if you experience a major life event, including the birth of a child, getting married, or losing existing coverage. That’s why it is important to enroll before your new hire deadline or during your company’s annual open enrollment season.
Yes. If you have access to your partner’s or parents’ health plan, you might consider carrying two plans. If you’re employed, your plan will serve as the primary and the other plan is secondary. If your primary insurance doesn’t cover a certain procedure or only partially covers it, your second could pick up the costs.
If you’re concerned about what-if situations, but want a base plan, you may be able to obtain extra coverage, called a top-off plan. If you surpass your plan’s limits, say for a hospital plan, your top-off kicks in to cover the difference.
Now that you understand the ins and outs of health coverage, you’re ready to make your selection. Take your time, research your company’s offerings, and check with your current doctors. Then, sign up for the plan that fits your healthcare needs – and your wallet.
We can help. Read more of Smart MNE’s New You Guide, a collection of tips and explainers to start your new job, internship, or whatever on the right foot.