Skip Nav
Budget Tips
28 of the Biggest Money Wasters, According to Real People
Budget Tips
221 Upcycling Ideas That Will Blow Your Mind
Organization
The 1 Thing You Can Do to Simplify Your Whole Life

Difference Between an HMO and a PPO

HMO vs. PPO: Which One Should You Pick?

Sometimes all these acronyms can make your head spin. All you want to do is pick an insurance plan that will cover your needs — so which one is right for you? Read on to find out:

You should pick a PPO if:

  • You like the flexibility of choosing out-of-network doctors even though you might have to pay more for them.
  • You don't want to jump hoops and request a referral from a primary care physician if you see a specialist. A PPO lets you see a specialist without a referral.
  • You don't mind paying the doctor directly and going through the hassle of filing a claim with the insurance company.
  • You're willing to pay a deductible and higher copays in exchange for flexibility.

You should pick an HMO if:

  • You don't want to bother with filing claims and would rather leave it up to the doctors and physicians to file the claims to get paid.
  • You don't want to pay a deductible.
  • You're OK with sticking to the in-network doctors.
  • You want lower monthly fees and copayments.
  • Note that there may be some limitations on services it covers. You can always appeal it, but it's not certain if you will succeed.

In a nutshell, if you're in good health and aren't picky about doctors, an HMO would be the right plan for you. But if you have favorite doctors that are out-of-network or if you have special needs, get a PPO with a low deductible.

Image Source: Thinkstock
Around The Web
Join The Conversation
Biggest Waste of Money
Best Websites to Save You Money
Couple Claims Largest Powerball Prize
Best Things in Life That Money Can't Buy
How Much Does Rent Cost in America?
Lottery Horror Stories
Chinese Lottery Winner Dressed as Baymax From Big Hero 6

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

From Our Partners
Latest Career & Money
X