What are the four major insurance plan types?

• A. PPO, HMO, HDHP, and EPO
• B. PPO, HMO, POS, and CDHP
• C. HMO, EPO, POS, and FSA
• D. PPO, HDHP, PDP, and HMO

Answer: (A)

Understanding the four major health insurance plan types helps you compare how you access care and how costs are shared between you and the insurer. The typical four are PPO, HMO, EPO, and HDHP. A PPO (Preferred Provider Organization) gives you a lot of flexibility: you can see any doctor, including specialists, and you don’t need referrals, though staying in-network saves money and out-of-network care costs more. An HMO (Health Maintenance Organization) usually costs less but requires you to choose a primary care physician and obtain referrals for specialists, with most care limited to in-network providers. An EPO (Exclusive Provider Organization) relies on a network like an HMO, generally requiring you to stay in-network for coverage, but you typically don’t need referrals for specialists. An HDHP (High-Deductible Health Plan) features higher deductibles and lower monthly premiums and is commonly paired with a Health Savings Account (HSA), making it a good option for those who want lower upfront costs and the ability to save tax-advantaged funds for medical expenses.

These four cover the main ways networks, referrals, and cost-sharing are structured, which is why they’re identified as the standard set. Other listed items include a spending account (FSA) that isn’t a plan type itself, or plan variants like POS or PDP that aren’t the basic categories used here.