What is an HMO?
TL:DR (AKA Too Long, Didn’t Read. As the kids say!)
Less flexibility to choose doctors
No real coverage outside of the network
Typically cheaper than other options
I will say this, a lot of people think HMO’s are bad, however that’s not entirely true. An HMO stands for Health Maintenance Organization. Most people are somewhat familiar with the term or its counterpart a PPO plan, Preferred Provider Organization, typically their understanding isn’t always correct.
Depending on your area (don’t forget plans go off your zip code), HMO’s are the cheaper of the two options, between HMO and PPO. In an HMO a lot of times you need: prior authorizations, can only go to doctors or hospital networks in your plans area, care outside the network (unless an emergency) isn’t covered, etc.. While this can sound bad, it truly does depend on your zip, health, finances. IN GENERAL TERMS, if you can get a PPO for the same cost (give or take) as an HMO, that’s what we’d recommend. If you never travel, use the same doctors in your area, are in an assisted living home/nursing home, then an HMO could be a suitable option for you.
Again, these are all general scenarios and for more in depth advice, reach out to a local brokerage or feel free to give us a call to go over how your HMO can help or hurt you.
