What is the difference between HMO and PPO??

HMO: A Health Maintenance Organization, or HMO, provides employers a way to take care of all their employees鈥?health care needs with reduced costs by negotiating with specific doctors, hospitals, and clinics. These specific providers must be used by the employee for the reduced fees to be provided to their medical insurance plan.

PPO: In a Preferred Provider Organization, or PPO, an employer can also provide employees with reduced costs billed to their health insurance plan. Similar to a HMO, but the employees can choose the physician they want to see instead of being solely restricted to the HMO providers. An employee can choose between a member or nonmember provider. The member provider would be the least expensive choice for the employee.

the hmo is supposed to manage your health care, make sure you're seeing one provider who is in charge of managing your healthcare needs, chronic or otherwise. a ppo, is a preffered provder organization, like a network of providers from which you can choose anyone to see as long as they're in that network. it's generally more than an hmo because YOU choose whom you want to see.

The main difference is that with an HMO, you have to get a referral to from your primary docter. That includes seeing any type of specialist. In addition, there are times when you are regulated to go to the HMO health center rather than going to your primary physicians normal place of business.

In PPO, you can see any specialist (at any time) you want as long as that person is part of the network.

PPOs are usually more expensive than an HMO.