Whether you’re getting health insurance through your employer or are looking at purchasing a plan on your own, chances are good both an HMO and a PPO are among the selections you’re considering. But which is the best choice for you and your family?  What are the advantages and disadvantages of each?  Allow us to provide a brief overview:

Health Maintenance Organizations, or HMOs, are organizations of healthcare providers (for example, doctors and hospitals) that have contracted with an insurance company to offer their services at a fixed price.

HMOs are the less expensive of the two plan types, and in an effort to keep costs in control they tend to be restrictive and rule-bound. The heart of any HMO is the primary care physician.  This one doctor manages all aspects of your healthcare and authorizes all visits to specialists. The primary care physician must be a member of the HMO, so if you are not a member of an HMO already, chances are good you will have to switch doctors if you join one.

The major advantage to HMOs is the cost, offering the lowest premiums available for any type of health insurance plan.  Copayments are typically very low as well — sometimes there’s no copay at all.

Preferred Provider Organizations, or PPOs, are also organizations of healthcare providers with contractual relationships with insurance companies. PPOs, however, are more loosely organized and are not as restrictive as HMOs.

PPO subscribers can see whatever doctors they like, but if an out-of-network physician is chosen, the subscriber will have to pay more out-of-pocket. Referrals are not necessary to see a specialist.
PPOs cost more than HMOs, but many people find the less restrictive setup to be well worth the money. PPO subscribers have a great deal more control over their own healthcare decisions than HMO subscribers.

InsureMeOnline.com can get you free quotes on both types of plans.  See for yourself whether an HMO or a PPO is right for you and your family.