There are many different types of health insurance in Texas. One of the most common is the managed care health plan, which contracts with a specific group of doctors, medical professionals and hospitals (a network) to provide care to their subscribers. These contracts enable insurers and health care providers to agree upon services offered and pricing for those services to keep costs manageable without compromising patient care. If a patient chooses to see a doctor or be admitted to a hospital that is out-of-network, the out-of-pocket costs increase considerably. While choice is limited for the patient, there is advantage of more affordable care.

Usually, managed health care plans are less expensive than other health care plans. When it comes to health care insurance in Texas, managed care plans extend lower rates because they have handpicked the providers that have agreed to their predetermined rates and fees. The providers also agree to avoid unnecessary tests and procedures in order to help keep costs down. Managed care health plans also provide benefits that encourage members to stay healthy, like help to quit smoking, in order to avoid more expensive health problems later in life.

The managed care health system uses three types of plans:

HMO (Health Maintenance Organization) – An HMO requires you to use the doctors and hospitals in their network. This is fairly standard with most health insurance in Texas. An HMO requires members to choose a primary care physician from their network of providers. The PCP must approve all procedures and visits to specialists. Patients pay a deductable for every office visit.

PPO (Preferred Provider Organization) – A PPO offers greater flexibility to patients and does not require PCP approval before treatment is received or specialists visited. Patients can choose their own in-network providers for their care, even specialists and do not have to visit multiple doctors before anything is done. You’ll want to be sure to stay with in-network doctors or the costs can go up by more than half (if covered at all). Staying in your network is a good rule of thumb for most health insurance in Texas.

POS (Point Of Service) – A POS is an optional plan that will allow you to utilize providers that are not in your HMO network. This means you don’t have to get a referral. Unfortunately, once again using out-of-network providers will cause you to incur a higher fee as with the other health insurance options in Texas.

For health care insurance in Texas, you are required to pay a premium in order to keep the health plan active. For certain medical services, such as surgeries, you may be required to pay a deductible before the insurance will pay anything. The deductible is an out-of-pocket expense that you provide. Depending on what insurance plan you choose, you will pay that certain deductible amount before your insurance kicks in.

Also, most health insurance plans in Texas will require you to pay a co-pay every time you visit the doctor or get a prescription filled even after your deductible has been met. Some managed care plans have a yearly limit to your out-of-pocket costs and will cover 100% of any charges for medical services or medications that are incurred above and beyond this limit.

Since there are so many variables involved with health insurance plans, it is important to consider your choices wisely before making a decision that can have a dramatic effect on your physical and financial health over the years.

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