Medicare HMO Plan vs PPO Plan
There are two Medicare Advantage plans: Medicare HMO (Health Maintenance Organization) plans and Medicare PPO (Preferred Provider Organization). There are slight differences between HMO vs PPO plans.
The Key Difference: Usage of the Plan’s Provider Network
Medicare HMO and PPO policies are mainly different in utilizing the plan’s provider network. Medicare PPOs give plan members greater flexibility than Medicare HMOs to see providers outside the networks.
A provider network is a list of physicians, hospitals, and other healthcare providers under agreement with a health plan. Providers in a network agree to provide the coverage, which reduces the financial burden on you. As a result, programs have low pocket costs due to sharing savings with plan-enrolled members.
There may be some differences between Medicare PPO and Medicare HMO plans. Read about the following plan type to know better.
Medicare HMO Plans and Its Regulation.
Medicare HMO plan members generally must select a primary care provider (PCP) from the plan network. The PCP provides healthcare, assists plan members with the services, and refers them to specialists such as cardiologists and dermatologists if needed.
Although Medicare HMO plans may include a monthly premium and a deductible, the cost may be minimal – even $0 in some circumstances. Members usually pay a copayment after meeting any deductible for the covered health care services.
Notably, a Medicare HMO plan may not cover care provided by non-network providers. The plan member would have to bear the entire cost.
Medicare PPO Plans and Their Regulation
With every Medicare PPO plan, there is a provider network. These plans also cover out-of-network services. Furthermore, members of the PPO plan may visit specialists without having a reference.
Medicare PPO plans may levy a monthly premium and a deductible. Members typically owe a copayment after reaching the deductible for the covered health care services covered.
Although Medicare PPO plans may cover care outside of the network, the plan members generally charge more than a network provider would for the same respect.
Which Plan Would Be Right for You?
Now that you have understood the key differences between a Medicare HMO plan and a Medicare PPO, check out your healthcare providers and specialists. Analyze how you and the care providers would work on utilizing the plan. Will you even check out while on an HMO? Moreover, what about a PPO? See also how costs between the two types of plans differ on the services.
Either plan is a wise decision, but identify which would be the right for you based on your health and financial needs.
Reach out Today at NewMedicare.
