Insurance can be complicated and difficult to understand. One of the biggest questions insurance agents get is, “What’s the difference between an HMO plan and a PPO plan?” Next people ask which route is better. All manager care plans have contracts with doctors, x-ray technicians, pharmacies, and other medical vendors. These contractors are part of your network. Some plans require you to seek medical attention within your network while other plans let you have more freedom in seeking medical care outside of your preferred network. HMO Plans: HMO stands for health maintenance organization. If you sign up for an HMO plan, you typically receive medical
HMO vs. PPO: What’s the difference?
It is important to learn about your health insurance options, so that you will know which option is right for you, your family and/or your small business. What is an HMO? HMO stands for health maintenance organization. Health maintenance organizations (HMOs) contract with healthcare professionals and facilities, which make up a “provider network.” With HMO insurance you typically pay a small copayment to visit a doctor or a hospital within your HMO network. The benefit of HMO insurance is that it generally has lower premiums and copayments. A disadvantage of HMOs is that they are the least flexible type of health insurance. This is because