Health Insurance: Making the Difficult PPO vs. HMO Decision
For tight-budgeted families, price is typically the single biggest determining factor when choosing a health insurance plan.
Unfortunately, making the right choice is really not that simple. In fact, there many different types of coverage, deductibles, access to doctors and a wide range of additional variables you need to weigh when shopping for health insurance.
This means you need to do some research before settling on a health insurance plan.
HMO vs. PPO
Health care plans fall into two primary categories - indemnity plans and managed care plans, or more commonly called HMO's and PPO's. A PPO, or indemnity plan, permits you to choose your doctor and pay for your medical bills (either in part or in full) up to a predetermined amount.
In many instances, cheaper health care plans translated into lower rates and (often) a much lower quality of service to boot.
That being said, if you are in good health overall and take care of yourself properly, a cheap health care plan may be exactly what you need to supplement your generally healthy lifestyle.
Should You Choose HMO or PPO?
If you opt for an HMO plan, your health insurance plan will cover almost everything from emergency room visits to preventive care.
These types of plans are highly affordable and ideal for those who are self-employed or need to cover their entire family rather than just oneself.
HMO's are so popular because they tend to offer the lowest premiums across the board, and they also have a wide array of some of the most cost-effective health insurance options on the market.
They also feature lower deductible, low co-pays and discounts on prescription medication.
All About PPO
PPO health insurance policies are typically more expensive than a comparable HMO. However, they offer an affordable fee for service options which allow you to customize your plan to fit your budget.
You can choose to pay lower premiums in exchange for higher deductibles, so these types of plans can be easier to work into your budget in some cases.
PPO insurance works roughly the same as an HMO, except that you have to choose a hospital and doctor within their network to be covered. For many people, this lack of flexibility is a big negative.
Regardless of whether you chose an HMO or PPO, it is important to fully understand the costs and benefits associated with any health insurance policy before you make the financial plunge.
Unfortunately, making the right choice is really not that simple. In fact, there many different types of coverage, deductibles, access to doctors and a wide range of additional variables you need to weigh when shopping for health insurance.
This means you need to do some research before settling on a health insurance plan.
HMO vs. PPO
Health care plans fall into two primary categories - indemnity plans and managed care plans, or more commonly called HMO's and PPO's. A PPO, or indemnity plan, permits you to choose your doctor and pay for your medical bills (either in part or in full) up to a predetermined amount.
In many instances, cheaper health care plans translated into lower rates and (often) a much lower quality of service to boot.
That being said, if you are in good health overall and take care of yourself properly, a cheap health care plan may be exactly what you need to supplement your generally healthy lifestyle.
Should You Choose HMO or PPO?
If you opt for an HMO plan, your health insurance plan will cover almost everything from emergency room visits to preventive care.
These types of plans are highly affordable and ideal for those who are self-employed or need to cover their entire family rather than just oneself.
HMO's are so popular because they tend to offer the lowest premiums across the board, and they also have a wide array of some of the most cost-effective health insurance options on the market.
They also feature lower deductible, low co-pays and discounts on prescription medication.
All About PPO
PPO health insurance policies are typically more expensive than a comparable HMO. However, they offer an affordable fee for service options which allow you to customize your plan to fit your budget.
You can choose to pay lower premiums in exchange for higher deductibles, so these types of plans can be easier to work into your budget in some cases.
PPO insurance works roughly the same as an HMO, except that you have to choose a hospital and doctor within their network to be covered. For many people, this lack of flexibility is a big negative.
Regardless of whether you chose an HMO or PPO, it is important to fully understand the costs and benefits associated with any health insurance policy before you make the financial plunge.
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