HMOs, PPOs, And More: What Does It All Mean?

If you are in the market for a new health insurance plan, you may be wondering what all the extra letters mean. Obviously, they are important, but how will they affect your care and quality of life? In an effort to help you figure out exactly what your plan is offering, here are some details on those pesky insurance acronyms. Once you understand this information, looking at health insurance quotes and figuring out which one is best for you will be easier than it has ever been before. 

HMO

A health maintenance organization is a group of physicians, hospitals, and other healthcare providers that have agreed to offer their services at a specific cost. If you sign up for an HMO, you will be required to see these specific providers in order to avoid paying a higher cost out of pocket. Most HMOs have a substantial amount of providers in their network, allowing you the freedom to choose who you see, though you should take a look at the list of providers in-network before you sign up. This is especially true if you want to stay with a certain doctor after signing up. 

PPO

A preferred provider organization plan, similar to an HMO, has a group of providers that are in-network, though you are not absolutely required to see them. PPOs offer a bit more flexibility, where you can see providers outside your network and you do not need a referral to do so. The one downside to this flexibility is that PPOs are sometimes a bit more expensive than HMO plans.

EPO

Exclusive provider organizations are plans where you only have coverage when you go to specific providers. HMOs still offer some coverage to out-of-network providers, while EPOs do not at all. Before signing up for an EPO, you should make sure that you'll have access to the doctors you need and want. 

The acronyms describe the type of plan you will be getting, which dictates where you can go for your medical needs. Going outside of your plan could incur hefty bills that are not covered by your insurance. Make sure you know what you are looking at when getting insurance quotes in order to make the absolute best decision for you and your family. Simply knowing these terms could save you a lot of stress and money when trying to get help. 

To learn more, contact a resource like Optimized Health Plans.