What is the difference between a PPO and an HMO?

A PPO (Preferred Provider Organization) and an HMO (Health Maintenance Organization) are two different types of health insurance plans. The main difference lies in the flexibility and level of control over healthcare choices. A PPO offers greater flexibility as it allows individuals to see any healthcare provider, including specialists, without a referral. However, using in-network providers results in lower out-of-pocket costs. On the other hand, an HMO is more restrictive, requiring individuals to choose a primary care physician (PCP) and obtain referrals to see specialists. HMOs typically have lower premiums but fewer choices in providers. The PCP manages and coordinates all healthcare. When considering PPO vs. HMO, it's important to assess cost, network size, provider choice, and access to specialists to determine which plan suits individual needs.