HMO (Health Maintenance Organization) and PPO (Preferred Provider Organization) are two common types of health insurance plans:
HMO: In an HMO plan, you are required to choose a primary care physician (PCP) who manages your healthcare and provides referrals to specialists within the plan’s network. Except for emergencies, HMOs typically require you to receive care from in-network providers.
PPO: PPO plans offer more flexibility in choosing healthcare providers. You can see any doctor or specialist you prefer, both in-network and out-of-network, without requiring a referral. However, out-of-network care may result in higher out-of-pocket costs.