How do HMO and PPO plans differ?
Preferred Provider Organization (PPO) plans provide freedom of choice with regards to your medical care. The costs of these plans has risen steadily over the years. In response to this fact, Health Maintenance Organizations (HMO) were created as an attempt to keep health care affordable for the average family. It accomplished this task, primarily through containment of costs and limiting panels of physicians. A former associate of mine offered this excellent analogy: Suppose that you want to go the shopping mall. You have two options to get there from your home: you may drive directly or take public transportation. If you drive directly, you pay for the costs of your vehicle, the fuel, maintenance and upkeep, but you have the freedom to travel at the time of your choosing, as well as the route. (PPO) Public transportation, on the other hand, will still get you to the mall. The monetary cost of the trip will be cheaper, however, it might not be as convenient – you might have to walk a f
Preferred Provider Organization (PPO) plans provide freedom of choice with regards to your medical care. The costs of these plans has risen steadily over the years. In response to this fact, Health Maintenance Organizations (HMO) were created as an attempt to keep health care affordable for the average family. It accomplished this task, primarily through containment of costs and limiting panels of physicians. A former associate of mine offered this excellent analogy: Suppose that you want to go the shopping mall. You have two options to get there from your home: you may drive directly or take public transportation. If you drive directly, you pay for the costs of your vehicle, the fuel, maintenance and upkeep, but you have the freedom to travel at the time of your choosing, as well as the route. (PPO) Public transportation, on the other hand, will still get you to the mall. The monetary cost of the trip will be cheaper, however, it might not be as convenient – you might have to walk a f
