I hear the terms – PPO and HMO. What is the difference?
A PPO is an acronym for Preferred Provider Organization while HMO is short for Health Maintenance Organization. An HMO is generally more restrictive when it comes to navigating through the medical community. With an HMO, you must select a Primary Care Physician (PCP) who is responsible for directing the appropriate medical care. Approvals by the PCP must be made in advance of receiving services or financial penalties may result. PPOs, on the other hand, allow you to navigate through the system more freely using a network of medical providers approved by the insurer, without prior approval by the primary care physician. Regardless of what a plan is called, it’s more important that you (1) look at and compare all of the plan features and costs and (2) make sure your favorite doctors are in the plan network. EasyStreet helps provide you with this information and also provides insurance counselors to answer questions.
