What’s the difference between an HMO, PPO and Indemnity Plan?
An HMO (Health Maintenance Organization) is a health plan that provides coverage for treatment by a network of doctors, hospitals and other health care providers within a certain geographic area. HMOs do not offer out-of-network benefits. A PPO (Preferred Provider Organization) is a health insurance plan that offers coverage by network doctors, hospitals, and other health care providers, but also provides a lower level of benefits for treatment by out-of-network providers. A PPO plan does not require the selection of a Primary Care Physician (PCP). An Indemnity Plan, sometimes referred to as a ‘Fee for Service’ Plan, is a health plan that typically places no restrictions on which providers a member may visit for healthcare services.
