One issue that continues to be a hot topic of conversation for many people is health insurance. If you are one of them, aside from looking or the kind of policy that is affordable, it’s also important that you assess all of the different kinds of plans. That way, you can make sure you get the kind that can best suit your needs.
Two popular health insurance plans are HMOs (Health Maintenance Organization) and PPOs (Preferred Provider Organization). If you’re familiar with the terms but you’re not sure about the pros and cons of both of them, we have enclosed some information that you should know about both below:
The Advantages and Disadvantages of an HMO
If you’re looking for the kind of health plan that comes with low premiums, then an HMO is something that you should consider. There are several reasons why people like HMOs. For one thing, the premium that you’ll be required to pay will be considerably lower than other plans. Also, although you will be expected to pay a co-payment, they are affordable; usually range somewhere between $5-20. Another great thing about HMOs is that you will not have to pay a deductible. However, while it is an affordable plan, there are some challenges to think about. For one thing, being on HMO plans means that you will have limited access to a variety of doctors to choose from. Not only that, but you will also have a limited amount of services that you can use too. Finally, another thing that we should mention is that with an HMO, you tend to have a lack of privacy. We say this because HMO employees are actually able to review your personal records, even without your permission.
The Advantages and Disadvantages of a PPO
On the other hand, if you’re looking for a health care plan that gives you the freedom to see physicians outside of a particular network, then you might want to go with a PPO. One of the benefits that come with this plan is the fact that you will not have to commit to a particular primary health care physician; this will give you access to a wide variety of physicians and facilities. This also means that you’ll be able to choose whatever doctor you want for the medical care and treatment that you need. Plus, if you happen to require a specialist, you will not need a referral in order to make an appointment to see one. As far as the disadvantages, the main thing to keep in mind is that there will almost always be a deductible, including a co-insurance amount that will be required to be met. This means that ultimately, it will cost you more money than an HMO being that you will be expected to pay the deductible, the co-insurance, and any other applicable fees.
As you can see, there are pros and cons that come with HMO and PPO health plans. When it comes to choosing your insurance plan, our recommendation is to contact an insurance franchise company so that they can assist you in making a choice that is truly best for you. One that will be good for your budget and more importantly, your personal health needs.