Choosing the right health insurance coverage for your family can be a stressful process. A major consideration when deciding upon any family health insurance plan is how many people you want to insure and what type of family coverage each plan provides. There are two options families have when choosing health insurance: group plans and individual plans.

Most families go with group insurance policies because the costs are lower and are provided through the workplace. There are three different types of policies to choose from: HMO's, PPO's and Health Saving Accounts (HSA). HMO's cost the least, but you have to visit one of their in-network physicians. You must get a referral from your primary care physicians to visit a specialist. PPO's cost more, but offer more flexibility. You are allowed to see any physician you wish and can see any specialist without a referral. It is cheaper to see a physician on their preferred provider list, but can see other physicians at a higher cost. If you see a physician on the preferred provider list, usually the PPO will pay between 70%-80% of expenses. If given the choice between a HMO and a PPO and you have the financial flexibility, most families choose PPO's over HMO's for their family coverage.

HSA's are new and provide a tax-free means of paying your health care costs. HSA's are owned by the individual and are most popular with health individuals. Each person is enrolled in a high deductible health plan and each month instead of paying premiums, funds are put a HSA. When a family member goes to the doctor, payment is made through your HSA. This option allows you to choose whatever doctor or hospital best fills the needs of your family. This type of health insurance coverage is most popular with healthy individuals because they access health care less and therefore can build up money in their account to be used at a later date. If anyone in your family has substantial health care needs, a HSA may not be right for you.

Individual plans are bought privately and are not tied to any workplace. These plans are usually very expensive and are underwritten, so it is possible for insurers to include exclusions for certain conditions. Your premium is based upon your expected health care costs, so the cost will be higher if you are older or if anyone has health issues. In some states, if you are self-employed you are eligible for a group rate even if it is a business of one person.