What is the Difference between HMO and PPO
Health insurance is today’s necessity because of many reasons. The most important reason being to “hedge” the risk of paying huge bills of hospitals and medicines as well. This fear of paying extra, introduced the health insurance policies of different types. The health insurance has evolved over time with many options and advanced easy methods of applying. HMO and PPO are the two widely liked and useful health insurance policies.
HMO
Health Management Organization is the health insurance organization, which is suitable for the people, who prefer to pay fewer bills and want to keep their out-of-pocket costs as low as possible. Moreover, HMO is highly suitable for those, who need family annual physicals, well baby visits and OB/GYN care.
PPO
Preferred Provider Organizations are managed care. PPO is for those people who want to choose any doctor in case of some chronic conditions like back ache etc. This option is also suitable for those, who prefer to use alternative medicine services such as acupuncture or chiropractor.
HMO vs PPO
With an HMO plan, costs tend to be much lower. HMO plans often have no deductible amount and co-payments are low for visiting a doctor or hospital. This means that the person can keep his paying costs up to a minimum level. These tradeoffs come in HMO plan with restrictions on when you can receive care and from whom. There is a pre-approved list of healthcare providers in HMO. If you need specialist care, you’ll need a referral from your doctor and for some treatments, approval from the plan manager. PPO plans is expensive, but have fewer restrictions. Many PPO plans have a deductible between $500 – $2,000 and a higher monthly premium. With a PPO, you will be able to see doctor of your own choice. PPO plans also have pre-approved lists of healthcare providers but they have a provision of letting you see your own choice of doctor.
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