In Network Care

If you have HMO insurance, you must first pick a primary care physician who will oversee all your medical care. If you need to visit the hospital or see a specialist, your primary care physician must approve the care or the costs will not be paid by the insurance.

Lower Out-of-Pocket Costs

With an HMO, you will pay less out of pocket than with other types of health insurance, such as PPO (Preferred Provider Organizations) plans. Most HMO plans do not require you to meet an annual deductible nor do they require you to pay copayments or coinsurance.

HMO Compared with PPO

PPOs allow you to go to any physician you choose, although you'll pay more out of pocket for doctors outside of the network. You will also have to pay a deductible, copayments each time you visit the doctor, and coinsurance for hospital visits or medical procedures.

HMO History

The HMO Act proposed by President Nixon and passed by Congress in 1973 helped fund more of these organizations. Unions began working with HMOs to provide health insurance for workers soon after.

Finding HMO Policies

If you receive your health insurance through your employer, you may not have the option of choosing an HMO. However, most insurance companies do offer this option, as well as PPO policies.

Source:

Insure Lane

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