HMO FFS which medical insurance is cheaper for me?

Question

I am in a tight-budget situation and i need to know which medical insurance is cheaper.

Thank you

Answer 1

You need to look at the difference in premium and the out of pocket amounts (co-ins and co-pays) and try to estimate how much you will use them during the year. Chances are, the HMO is more in premium, but less out of pocket than the FFS. Compare the benefits of each and make sure that whichever one you choose has benefits that you NEED for your personal healthcare.

But only you can gauge how much you will use your insurance.

Answer 2

An HMO will probably be a little more pricey than some of the other options that you have.

You may want to consider a Health Savings Account (HSA) coupled with a high deductible health plan to really save money on your monthly premiums.

You can not only get low premiums, but tax benefits and comprehensive coverage in cause you ever get hit with a large medical bill. Here is some more info on HSA's as well as some information on HMO's:

Answer 3

HMO are usually on the expensive side because they tend to be set up with very little paid out of your pocket before the insurance company pays.

FFS or fee for service plans can also be expensive depending on the amount of out of pocket expense you are willing to accept.

The cheapest health insurance is the plan with the most out of pocket expense for you before the insurance company pays their part. For example if you get a plan where you pay the first $5,000 of medical bills then the insurance company pays the rest of your medical bills up to 5 million or so each year, this will be very inexpensive or cheap.

With all the different health carriers and plans available your best bet is to talk to a broker who can help you find the right balance between benefits and premium.

For example a typical broker can have access to 10 major carriers and 60 different plans just for one state.

You can try doing your own research on the internet, but if you give a good broker 5 minutes they will be able to make suggestions on which carrier may fit you best.

I suggest using yellowpages.com to search for health insurance brokers in your area.

Don't call your auto and home agent they specialize in property and causality insurance. You need someone that specializes in health insurance.