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What are the differences between HMO plans and PPO plans?

What are the differences between HMO plans and PPO plans?

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Answer #1

HMO is a health maintained organisation whereas PPO plans stands for Preferred Provider Organisation.

The premium for HMO plans are lower than that of PPO plans. PPO plans generally have higher deductible and higher premiums. PPO plans offer more flexibility and have wider choices in selecting a doctor or hospitals because of the wide network it has. In HMO plans, a list of network providers are given to choose from and no coverage is provided if you choose services outside of the network. In PPO plans, the network providers of chosen from outside has very few restrictions as compared to HMO plans.

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