Know Your Health Insurance Acronyms

Acronyms are the way of the world in the 21st century. Be it correspondence on social media or review of government programs, these forms of abbreviated words encompass more of everyday speak than ever before. One of the main culprits of this is the health care system. From PPO and HMO to PCP and AHCA, the acronyms of healthcare can confuse even the most intellectual person.

Well, we’re here to help. In order to make sure you and your young family are receiving the best health care, here are a few of the most common acronyms to know.

ACHA – The Affordable Health Care Act. Known as Obamacare, the ACHA has been in active service since 2014, despite numerous moves to have it repealed. The federal version of this plan is the main one; however, many states now offer health care exchanges of their own which work in conjunction with the ACHA.

HDHP – High Deductible Health Plan. This is a health insurance program which offers lower premium costs to subscribers but a higher deductible they must meet before the premiums go into affect. Sometimes premiums can be as high as $10,000 or more. For young families on a tight budget, this may not be a suitable plan to use in order to save money.

HMO – This is a Health Maintenance Organization and, at one time, the most common option provided health care companies. Under an HMO subscribers can only choose health care providers from within the network supported by the company. Co-pays are normal in this type of environment and patients normally need to be referred to a specialist should an issue need to be further examined. In some plans the deductible paid out by the subscriber is lower than others.

PCP – Primary Care Provider. This is a primary physician or specialist which handles care for your young family. Selection of a PCP depends on the type of health insurance and the region of the country you live in.

PPO – Preferred Provider Organization. Besides HMOs, PPOs are the most common health care option chosen by many subscribers. Where HMOs require you to stay in network for physicians, PPOs allow you to select any PCP in or outside the network. Premiums between physicians in and outside of the network depends on the type of PCP. Deductibles on PPOs do not depend on staying with providers within or outside of the subscriber network.

Selecting the right health care for your young family is a very important decision. Go small, and out-of-pocket payments could kill your budget. Go to big, and you could be paying for something which you rarely use. Consult with the health care programs and your physicians to make a proper determination of the proper health insurance program.

 

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