Tip of the day: HMO or PPO?

Enrolling in your health plan, and can't decide between an HMO or PPO health plan? If cost is key, consider an HMO. Members of those plans typically pay lower premiums and out-of-pocket costs, but choice of doctors can be more restricted. Check out how much you paid for coverage in the past 12 months. Then compare that with monthly premiums you would have to pay for a new plan, as well as the deductibles, co-pays or co-insurance, and prescriptions.

If  choice is important, consider a PPO. Those plans provide greater ability to choose any doctor, although reimbursement rates might be lower if you go out of the provider list. So check the list of providers in any new plans you are considering.

Take a look at 5 mistakes to avoid during open enrollment, read more on how to choose a health plan, and check out our HMO and PPO Ratings.

Comments

[Marilyn]

Something the consumer is never told is how much the plan pays the doctor. Doctors contract with more than one insurance company. If your plan pays them less you may wait a lot longer for an appointment.