HMO vs. PPO
Health insurance is no doubt a very important concern; however, with all of the incomprehensible range of plans that exists it can make it a real challenge in order for you to determine which one fits your needs and circumstances best. The first two insurances that come to mind when discussing insurance are HMO and PPO. These insurances are similar, but are unique in different ways. This essay will further explain how each of these plans work. Then we will take a look at the sense aspects as well as the dollars of these two types of plans so that you can evaluate which type makes the most sense to have when you consider the final factor: Your own individual opinion.
HMO stands for Health Management Organization and basically it’s managed care designed to control health care costs. HMOs are inexpensive since they only charge a very small fee per visit or none at all. When HMO Plans were first introduced, members paid a fixed, prepaid monthly premium in exchange for health care from a contracted network of providers. The contracted network of providers includes hospitals, clinics and health care providers that have signed a contract with the HMO. In this sense, HMOs are the most restrictive form of managed care plans because they restrict the procedures, providers and benefits by requiring that the members use these providers and no others. Along with the fact that HMOs are cheap, HMOs are also known for not giving their members any choice. They have to go to the doctor appointed to them, and sometimes they won’t get a good diagnosis because all HMOs want is to save money between visits, that’s what’s called business priority. All they care about is making money.
PPO stands for Preferred Provider Organization and this just like HMO it’s managed care that’s designed to control health care costs. PPOs are a little bit more expensive than HMOs, but it has a little advantage over HMOs. By charging higher rates, members get a say on the decisions...