A health maintenance organization, or HMO, is a type of managed care plan in which a network of health care providers contract with a health plan to provide services to those covered under the plan. Those covered under the HMO select, or are assigned, a primary care physician (PCP) who coordinates all care.

With an HMO plan, the patient must be referred to a specialist by the primary care physician in order for those services to be covered. A visit to a specialist will not be covered by the HMO if the referral is not made by the PCP. Services provided by healthcare providers who are not part of the HMO network will not be covered, unless the service is not available within the HMO.

This video takes a look at the what the difference is between a Health Maintenance Organization (HMO) and a Preferred Provider Organization (PPO). This is often confusing for people who are looking for health insurance and want the best options. HMO and PPO plans are completely different and each one may have it’s advantages when it comes to your life. In this video we take a look at each one of these types of plans to see which one may be the best option for you right now.

When selecting a health care plan it is important to understand and choose the right network of health care providers that fits your needs. Both HMOs (Health Maintenance Organization) and PPOs (Preferred Provider Organization) offer access to quality health care professionals. So what are the major differences between to the two networks?

HMOs:

HMO constitutes an organization of health care providers contracted with insurance companies that offer services at a fixed price. With an HMO, health care providers cap the patients they see in an effort to provide better service to their client base.