When it comes to health plans, Preferred Provider Organization (PPO) plans are some of the most popular. Keep reading to learn more about PPO plans and discover if they make sense for you.
What Are PPO Plans?
The term PPO stands for “Preferred Provider Organization.” This is a type of managed health plan where you pay less if you use doctors and hospitals that are included in the plan’s network.
In some cases, you can also use providers that are outside the plan’s network but in that case, you pay an additional cost.
PPO plans are one of the most popular types of health insurance. In the next section, we’ll see what’s the other alternative, and what are the differences between them
PPO Plans vs HMO Plans
The other most popular type of health insurance plan is called HMO, which stands for Health Maintenance Organization.
With HMO plans, care is offered through a restricted network of providers. These plans don’t include any out-of-network benefits. In other words, if you need non-emergency care and go to a doctor who’s not part of the plan’s network, then you’ll have to cover the costs yourself.
As you can see, one of the most important differences between these two types of plans is that PPO plans are more flexible than HMO plans. Being able to see an out-of-network physician while still having some coverage is an attractive feature for a lot of people.
However, there are other factors to keep in mind. For example, while HMO plans are less flexible, they tend to cost less than HMO plans.
If you have questions about PPO and HMO plans, or if you need assistance figuring out the option that works for you, contact the friendly experts at Lucero Benefits today. We’ll be glad to help you make sense of your alternatives.
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