Top Benefits Of HMO Health Insurance Plans

Posted on: 25 August 2020

Purchasing health insurance is a necessity-- no one knows when they may need medical care. If you don't have health insurance and you have to stay in the hospital for an extended period of time or have an emergency surgery, you can be left owning hundreds of thousands of dollars. Most people opt to buy health insurance either through an employee sponsored plan or from a marketplace, but the process is not always easy. Many buyers are unsure when to choose a PPO or HMO health insurance plan. In many cases, opting for an HMO health insurance plan is a good bet. Some of the top benefits of HMO health insurance plans include:

Less Expensive

One of the top reasons that people choose to purchase an HMO health insurance plan instead of a PPO plan is the fact that an HMO plan is usually less expensive overall. Monthly premiums are typically more affordable, and the cost of medical care is less. With an HMO health insurance plan, a person may have a co-pay to see a physician or medical treatment, but there is no co-insurance like there is with a PPO plan. For example, a PPO plan may be 80/20, which means that the insurance company will cover 80% of a medical bill, while the patient will be responsible for 20%-- this typically is not the case with an HMO health insurance plan.

Simplified Care Coordination

The goal of an HMO health insurance plan is to help keep people in-network, which simplifies the claims process. When you enroll in an HMO health insurance plan, you will be required to select a primary care physician. Any time that you need medical care, you will see your primary care physician, and he or she will refer you to an in-network specialist, if needed. The fact that the primary care physician coordinates care cuts down on paperwork and ensures that patients receive the care that they need without increasing costs.

Large Network of Providers

Most of the popular HMO health insurance plans have a very large network of providers, so you will always be able to receive the care that you need. You will be able to choose your own primary care physician, and the majority of HMO plans have many to choose from. You won't have to worry about finding a specialist, since your primary care physician will take care of any referrals that you may need.