What are the differences between HMO, POS and PPO plans? As a Benefit Administrator or Human Resources representative, how do I know which one to choose for our company?
Please refer to the Glossary of Terms for a description of each type of plan. Some things to consider as you are in the decision-making process are what your employees’ health-care needs are. Here are some questions that you may want to ask your employees as you consider your company’s options: Are you currently receiving ongoing treatment from a specific doctor? If so, is that doctor on the provider list for your prospective new insurance plan? If the doctor is not on the provider list, you may want to choose a POS or PPO plan, which would allow your employees to receive some out-of-network benefits while still receiving treatment from a doctor that was on the provider list for the former plan. If your employees do not use medical benefits frequently, and don’t mind limitations on which doctors they may see, you might want to consider an HMO plan, which is generally less expensive for both the employer and the employees, and tends to have more comprehensive coverage despite being more
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