Before choosing a health insurance plan, it is important to understand the difference between an HMO (Health Maintenance Organization) and a PPO (Preferred Provider Organization). Most HMO plans require a primary care physician’s referral before you can be seen by another doctor. PPO’s tend to be more expensive but allow for flexibility when choosing a doctor.
A health savings account (HSA) is a personal savings account for people who participate in high deductible health plans. HSA contributions are tax-deductible and grow tax free in your account. You can spend your HSA dollars on eligible health care expenses like copays, prescriptions, coinsurance, etc. And if you don’t use it, you don’t loose it.