What kind of coverage should I offer to my employees? What plan is the best for my family as well as for myself? Do I need an HMO plan or a PPO plan? Which plan gives me the best value for my money? Where do I find answers to all of these questions?
In this post, we’ll take a quick look at HMO vs. PPO plans and offer our tips for picking the right one for your family.
HMO vs. PPO Plans: What’s the Difference?
Let’s begin by first reviewing the differences between an HMO plan and a PPO plan.
In a HMO plan (Health Maintenance Organization), the subscriber’s medical expenses are covered within a network of health providers. The subscriber’s primary care physician will provide basic preventive care within this plan. The expense occurs when a subscriber has to go outside of the network. If you are needing to see a specialist outside of your network, your primary care physician must issue you a referral. The subscriber would generally cover all of the expense of this type of service. Historically, the cost of a HMO plan has been less expensive than a PPO plan. Recent studies have shown that HMOs tend to also receive favorable ratings from their subscribers.
In a PPO plan (Preferred Provider Organizations), the subscriber has more flexibility to visit out-of-network doctors and hospitals. In a PPO, visits to in-network and out-of-network providers are covered. As with the HMO, the PPO covers basic preventive care like checkups, physicals, emergencies, maternity care, surgeries and treatments. The PPO plan is usually a more expensive plan but offers more flexibility.
What is Right For Me?
The trend in the health insurance industry recently is showing that many insurance companies are beginning to offer a very competitive HMO plan in addition to the traditional PPO plan.
Here at Kincaid Benefit Group, we work hard to find the most competitive plan for you and your business. If you have questions, we work with you until you have the answers that you need. We represent many different companies and will help you select the health plan that best meets your needs. We’ve helped many families and businesses in the Evansville, Newburgh, Henderson, Owensboro, and Jasper markets find better health insurance options. Please give us a call today and let us show you how you can save thousands of dollars in your annual health care expenses!Request a Free Quote