If you have recently graduated from college or joined the full-time work force for the first time, you may have never purchased health insurance before. Because there are so many options and acronyms, you may find the process confusing. Should you get an HMO, a PPO, or an HDHP? To help you find your way through the wilderness, below is an introduction to purchasing the right health insurance plan.

An Introduction to Health Insurance for New Graduates

1. HMOs

A health maintenance organization (HMO) is a health care company that acts as both insurer and medical provider.  Because of this, your choices of primary care physician are limited to doctors within the network. However, this restriction helps keep costs down, so the price of an HMO plan is often affordable.

2. PPOs

If you wish to have more freedom in choosing a physician, a preferred provider organization (PPO) may be the right plan for you. It permits you to choose any doctor you like, but you only receive discounts and savings if you select one from their preferred provider network. It offers both cost savings and flexibility.

3. HDHPs

A high deductible health plan (HDHP) is similar to a PPO, but before your health insurance policy starts to contribute, you must first pay a deductible amount—typically about $1,500 for individuals and $2,500 for families. The benefit of this is that you often pay considerably less each month for coverage. However, the out-of-pocket costs are often higher if you need treatments. It is often helpful for young and healthy people who want protection in the event of an intensive illness or injury, but who don't want to pay a lot each month for coverage.

For expert assistance choosing a health insurance plan, contact Toohey Insurance Service in Somerset, KY. They have been serving Pulaski County residents since 1983 and have built a reputation for exceptional service. In addition to health insurance and Medicare plans, they can also assist you with business and disability insurance. Visit their website for a map to their office, and call (606) 678-0540 to request a health insurance quote.