What Is The Difference Between A HMO And A Ppo?
An HMO (health maintenance organization) and a PPO (preferred provider organization) are both managed care organizations that use certain procedures to manage the accessibility, cost and quality of healthcare. The levels of service and flexibility vary from plan to plan. An HMO shares financial and delivery risks relating to health care services with those who are enrolled in a healthcare plan in exchange for a fixed, prepaid fee. A PPO is a similar arrangement but the organization provides coverage for services through a preferred provider at a discounted rate. Services obtained by a provider who is not a preferred provider may be covered, but the rate may be substantially higher.
