main differences between PPOs and HMOs

The main differences between PPOs and HMOs are typically cost and flexibility. HMO plans are tied to a network of providers that a person must use for their plan to cover their medical costs. This “network” is built from contracts from health insurers with these providers or facilities, an agreement to provide quality healthcare to their members for a lower cost. In the past, HMO plans require a referral from the member’s primary care physician, though in more recent years, this requirement has faded out with many of the major health insurers. PPO plans, on the other hand, have greater flexibility when it comes to seeking medical care, but typically at a greater premium cost. This is due to the member not having to choose a primary care physician and can get services from in- or out-of-network providers and facilities without a referral. (Felman, 2021)