HMO.

A Health Maintenance Organization (HMO) offers the lowest premium among cheap medical insurance managed health insurance plans. Under this plan you are assigned to a doctor called the Primary Care Provider (PCP). A monthly fee is charged and you can go to a wide selection of care providers, clinics and hospitals. Your PCP coordinates all your health needs and refers you to other doctors within the HMO network if required.

Advantages of HMO Plans.

HMO plans are inexpensive compared to most affordable plans.  A Primary Care Provider coordinates your entire medical needs. HMO charges little or no co payments.  You don’t need to fill out a claim form because the PCP handles the entire claim for you. The PCP will give referrals to the best specialists within the network. It is the preferred form of managed health insurance for employer sponsored group health insurance.

The disadvantages of HMO. 

The rules of the HMO are very rigid. You cannot go out of the network of doctors allowed by the HMO. If you do consult a doctor pout of the network you have to pay 100% of all expenses involved. You have to refer to the PCP for all your health needs. The PCP acts as your health supervisor. 

PPO.

  A Preferred Provider Organization or PPO is a managed health care plan organized by the insurance Company with managed guidelines for healthcare and prescribed schedules of fees. The premiums are marginally higher than HMOs.

The Advantages of PPO.

The main advantage of PPO plans is their flexibility. You can choose to go to your own family physician or a specialist outside the network for a small cost. Many patients who choose professionals outside the network for their health needs find that the small cost involved is worth it.

The disadvantages of PPO.  

You need to file a claim to get payments under PPO. The PPO charges a co payment. If you see a professional outside the network, you must pay all expenses till a deductible is reached. If the out of network professional charges fees that is higher then what the PPO normally pays then you will have to pay the difference. PPO is a cheap medical insurance plan but it is costlier compared to HMO plans.

Both HMO and PPO health insurance plans are affordable, no hassle health insurance plans. You should choose the plan that is more convenient and affordable to you. Experts in the industry agree that you should obtain at least three free online quotes.