HMOs, PPOs and HDHPs

When choosing a medical plan you may have a choice between different types of plans that can often sound like alphabet-soup HMO PPO HDHP once you all of these letters mean and how do they impact what you pay or where you go for care rest easy it's not as complicated as you think.

Here's a quick overview that will help you understand the acronyms the main difference is with these various plans are how much comes out of your paycheck to pay for the plan your premium versus how much you pay out of your pocket when you go to the doctor or pharmacy and whether you need to see a specific doctor or a set of doctors that are part.

Of the plans network first an HMO or health maintenance organization is a health plan that typically cost less out of your paycheck but you have less choice of doctors when you choose an HMO you have to name a specific doctor who manages all of your care often called a primary care doctor you must go to this specific doctor before you see any other.

Doctors when you are sick or need care for example if you have a rash on your arm you need to see your primary care doctor before you can see a dermatologist you will have to make a predefined payment known as a copay every time you see your primary care doctor and any specialists she or he may send you to for care a PPO or preferred.

Provider organization is a plan that gives you more freedom to choose from a larger pool of doctors but generally cost more out of your paycheck with a PPO you don't have to choose a primary care doctor but you do need to see the doctors listed as in-network to get the most coverage from the plan.

Because PPO is don't require a primary doctor you have the option to go directly to a specialist just like the health maintenance plans you will pay a copay each time you visit the doctor or specialist finally let's talk about the hdhp or high deductible health plan this type of plan is sometimes called a CDHP or consumer driven health plan it's.

Called consumer driven because you have more control typically you aren't required to see a primary care doctor prior to seeing a specialist HDHP plans generally cost you the least out of your paycheck but have a higher deductible which means that if you need care you need to be prepared to cover most of the cost until you meet your deductible a.

Health savings account or HSA can be attached to the hdhp to help cover the expenses to sum it up HMOs offer lower monthly premiums but limit the choices you have for doctors PP o–'s offer more choices for doctors but typically cost more per month an HD HP's provide the most flexibility for you to manage your healthcare costs.

Typically offering the lowest monthly premium but an hdhp requires you to meet a higher deductible before your insurance plan begins to pay for services you
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