HMO and PPO Plans Explained
There are two main types of health insurance policies:
- The routine health insurance plans where you pay a premium and are compensated for a substantial part of your healthcare expenses (doctor's visits, hospital stays, prescription drugs, etc.).
- Managed health care plans are the other main type of health insurance plans. Managed healthcare plans are also known as HMO (Health Maintenance Organization) or PPO (Preferred Provider Organization). Companies providing these plans enter into a contract with doctors and hospitals to provide their services to the insured. These plans carry a lower premium than the basic health insurance plans, and here is what HMOs and PPOs are all about:
HMO (Health Maintenance Organization) Plans
A HMO is an organization of doctors, hospitals, diagnosis centers, etc. (healthcare providers) who have jointly entered into a deal with an insurance company. The HMO contracts with the insurance company to provide its services for a fixed price, usually at a discount.
HMO plans are considered restrictive, as the insured cannot consult his preferred doctor if he is not enrolled with the HMO. Plus, if specialist care is required, the insured has to first get a referral from his primary care doctor.
The only plus point of HMO plans is that their premiums are low, and so are the co-payments. If you want to save money and are convinced a HMO plan is giving you access to quality healthcare, you should go for it.
Cheap Insurance in Atlanta
The more we try to provide people with cheap, affordable insurance in Atlanta, the better we get at it. Right now we're pretty much a point where in order to get the cheapest health insurance plan you have to sign up with us. Why? Because we've been providing affordable health insurance to Atlanta residence for years. And I'm not talking some cheap, low cost insurance that doesnt provide adaquite benefits. I'm telling real Altanta policies that will save you hundreds monthly without loosing an inch of coverage.
PPOs (Preferred Provider Organization) Plans
In contrast to HMO plans, PPO plans allow you to see a doctor or use a healthcare facility of your choice, so long as they are networked with the PPO. You can still see a doctor who is not registered with the PPO, but then you will have to pay more from your pocket. No referrals are needed from your primary care physician, in case you need to see a specialist.
PPOs are more flexible and hence preferred by many who consider HMO plans restrictive. As these plans are flexible, they carry a higher premium, but are still cheaper than the basic insurance plans.
In the end, you must choose a plan that reconciles with your needs and budget. Good luck.