What do “HMO” and “PPO” mean?
HMO stands for “Health Maintenance Organization.” An HMO is an organization that provides a comprehensive range of health services including hospitalization, preventative care and diagnosis. HMOs require members to use specific health care services (doctors, hospitals, etc.) in the HMO’s “network.” If an HMO member uses health care services which are outside of their HMO’s network, the HMO will pay less or, perhaps, nothing at all. PPO stands for “Preferred Provider Organization.” A PPO is a health service plan with a network of physicians and suppliers who provide services to the plan’s participants at an agreed-upon price. A PPO may also offer additional benefits such as discounts on prescription drugs or transportation and access to health education programs.
