What is the difference between HMO and PPO plans?

HMO (Health Maintenance Organization) and PPO (Preferred Provider Organization) are two types of health insurance plans with distinct differences. HMO plans typically require members to choose a primary care physician (PCP) who will coordinate their healthcare needs and provide referrals for specialists. Visiting out-of-network providers may not be covered, except in emergency situations. On the other hand, PPO plans offer more flexibility. While they also have a network of preferred providers, members can visit any physician or specialist without a referral, including out-of-network providers, albeit at higher costs. PPO plans generally have higher premiums but offer greater choice and flexibility in healthcare providers. Choosing between an HMO and PPO should consider factors such as cost, desired level of flexibility, and availability of preferred healthcare providers for the insured individual.