Different Types of Insurance Policies for Hospitals

A hospital is expected to look after the health and wellbeing of not only its patients, but its employees. From encouraging healthy workplace practices to paying for their medical bills, there are several measures that hospitals can take in this regard.

One such critical measure is opting for insurance policies. However, with the range of choices available, it can be difficult to select the right one.

Here is a list of different insurance policies for hospitals:

Preferred Provider Organization (PPO) Insurance Policies for Hospitals

Under the PPO arrangement, employees will have a preferred network of medical service providers with whom the contract will be signed. These providers will then offer treatment to employees of the hospital at a discounted rate.

While this may result in higher out-of-pocket medical expenses for employees, they have the freedom to choose from whom to seek the treatment.  A referral is not required to seek treatment from a specialist.

Health Reimbursement Arrangement (HRA) Insurance Policies

In HRA, the hospital authorities put a monthly cap for their employees. This cap may vary depending on a person’s designation, years of service, or other parameters. Within that limit, employees can shop for health insurance that caters to their needs and then reimburse the amount. That way, even out-of-pocket medical expenses can be refunded efficiently.

Health Maintenance Organization (HMO)

HMOs are simple to execute and have a considerably lesser out-of-pocket expenditure. The employee needs to identify a primary care physician (PCP) of their liking. For treatment under them, there are no long claim forms involved. If some specialist or second opinion is needed, the same will need to be obtained in writing from the PCP.

Under the HMO, immunizations and checkups are hassle-free, and the premium is considerably lower than others.

Different types of insurance policies for hospitals come with their own pros and cons. It is for the organization to sit back and evaluate which works best for them and their employees. Contact the experts at Pittman Insurance Group to get a detailed overview of different insurance policies.

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