HMOs are typically cheaper than PPOs because you agree to get your health care services from within a predetermined "network" of health care providers. Not only are you restricted to certain doctors or locations, you also need a referral from your primary physician before you can visit a specialist. Therefore, HMO subscribers have a little less flexibility or choice in managing their healthcare options. The good news is that "in network" treatment is less likely to result in large out of pocket payments.  However, if you want to receive services from a provider who is out of network, it can be very expensive.

PPOs tend to be a little more expensive than HMOs because you are choosing to pay for more flexibility. With a PPO, you can visit any doctor/provider within your network without a referral. The network also tends to be larger than that of a comparable HMO from the same insurer. However, as part of a PPO, you are more likely to have to pay co-pays, deductibles or other similar fees for your visits. These costs can add up over time.

The high deductible health plan is typically a PPO plan but can be another type. It functions exactly like a PPO, but the out of pocket payments incurred by the subscriber are significantly higher. For example, a typical PPO would have a deductible of $500 but a high deductible plan may have a deductible as high as $5,000.  Therefore, under the high deductible plan you may have to pay the first $5,000 of annual expenses out of your own pocket before your insurance company starts paying. The benefit to choosing a high deductible plan is that your monthly insurance premiums are significantly less than what you would pay for an HMO or traditional PPO. This is a much more affordable option for people who are seeking protection primarily for catastrophic, high cost medical events. Fortunately, an increasing number of plans are offering free preventive care for routine procedures such as mammograms or a yearly physical as part of a high deductible health plan, which would allow you to receive these basic services without paying part of your deductible.

A POS is a plan where members pay no deductible. There is, however, normally a small co-payment members must pay when they visit a physician. POS plans require members to select a physician as their primary care physician (PCP). This physician is their primary care giver for all health-related issues and must refer members to other physicians if a specialist is needed. Just like HMOs, members of POS plans must typically stay within their network of doctors but, depending on the plan, may be able to go out of network. POS plans are much less common than PPOs or HMOs.

An indemnity plan gives plan members more freedom than managed care plans. In an indemnity plan, members can see any doctor they wish. There is no network of physicians involved in an indemnity plan and no restrictions. However, this type of medical plan is significantly more expensive than managed care plans and involves more out-of-pocket expenses. This plan is best for individuals who travel a lot and may find themselves outside of their normal network. This is also a less common plan.

COBRA is designed for people who recently lost their job. If you are qualified and willing to cover your monthly insurance premium, you are eligible for the same health benefits that you received while at your job. With recent legislation passed in 2009, COBRA benefits are more affordable than ever. To understand qualifications, see below.

a	Qualifying for COBRA: Three requirements must be met before you can qualify for COBRA coverage: i. Employer criteria 1. Your employer offers a health insurance plan 2. Your employer has at least 20 employees 3. You are not a Federal employee ii. Employee criteria 1. You were participating in your employer-sponsored health plan 2. COBRA coverage may be offered to employees, an employee's spouse, or an employee's dependents. iii. A qualifying event has occurred to the employee or dependents 1. If you leave your job voluntarily; this includes retirement 2. If your work hours are reduced so that you are no longer eligible for health benefits  3. If you leave your job involuntarily for any reason other than gross misconduct 4. Divorce or legal separation 5. Death of the employee
b	Cost of COBRA: Under COBRA, you may be responsible for paying up to 102% of the health insurance premium on your own. This may be expensive for someone who has just lost their job and other cheaper alternatives may be available to you (i.e. purchasing your own insurance independently. However, with COBRA, you do not have to reapply for new insurance and you keep your current benefit levels. You just have to contact your former employer and notify them of your desire to participate in COBRA.
c	Selecting COBRA: By law, when a qualifying event occurs, your employer must provide you with notice that COBRA is available. Once you receive notice, you have 60 days to choose COBRA continuation coverage. If you select COBRA, then your coverage will be retroactive to the day you lost your health insurance benefits due to the Qualifying Event.
d	Length of coverage: COBRA coverage continues for 18 months. If you initially rejected COBRA, but changed your mind within the 60-day window, then your coverage will begin on the day you notified your employer.
e	The COBRA term can be shortened if: i. You do not pay your premiums on a timely basis ii. Your employer ceases to maintain any group health plan iii. You obtain coverage with another employer iv. A beneficiary becomes entitled to Medicare benefits
f	Extension: The COBRA term can be extended if you become disabled within the first 60 days of COBRA continuation coverage. If you qualify, then you and your family may extend your COBRA coverage for an additional 11 months, but you may be required to pay up to 150% of the premium cost for those additional 11 months. Other circumstances for your spouse or dependents may qualify them for an extension as well.
g	Premium Reduction: The premium reduction for COBRA continuation coverage is available to "assistance eligible individuals". The Federal government will pay 65% of the premiums for people who elect COBRA coverage. An "assistance eligible individual" is the employee or a member of his/her family who is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009, elects COBRA coverage and is eligible for COBRA as a result of the employee's involuntary termination between September 1, 2008 and December 31, 2009. The premium reduction for an individual ends upon eligibility for other group coverage (or Medicare), after 9 months of the reduction, or when the maximum period of COBRA coverage ends, whichever occurs first. Individuals paying reduced COBRA premiums must inform their plans if they become eligible for coverage under another group health plan or Medicare.