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From PPO to HMO, what's the difference between the 5 most common types of health insurance plans? MB Boucai, Data Work By Dom DiFurio. October 23, 2024 at 8:45 AM. Drazen Zigic // Shutterstock.
Both plan types use a network of healthcare services. The main difference between them is the way the insured person can use those networks. View the table below for a comparison of HMO and PPO plans.
Everything you need to know in the HMO vs PPO health insurance plan decision, like their main differences and who each plan is best for.
In U.S. health insurance, a preferred provider organization (PPO), sometimes referred to as a participating provider organization or preferred provider option, is a managed care organization of medical doctors, hospitals, and other health care providers who have agreed with an insurer or a third-party administrator to provide health care at ...
It combines characteristics of the health maintenance organization (HMO) and the preferred provider organization (PPO). [1] The POS is based on a managed care foundation—lower medical costs in exchange for more limited choice. But POS health insurance does differ from other managed care plans.
[4]: 2 In the period between 1910 and 1940, early healthcare plans formed into two models: a capitated plan (essentially an HMO), and a plan which paid service providers, such as the Blue Cross and Blue Shield Plans. [4]: 2 One of the earliest examples is a 1910 "prepaid group plan" in Tacoma, Washington for lumber mills.
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