How to Choose the Healthcare That Is Best For You

Hello again everyone, and welcome to the start of my first miniseries: 10 Things I Wish They Taught Me in College, or TWTTC. Since most recent college graduates join the workforce in the summer months, I have decided to focus my first post on one of the most important decisions you must make when starting a new job, choosing the best health insurance for you. If you are anything like me, then you have probably never been taught what the differences between PPO coverage and HMO coverage, even though this is something that we will all need to know at some point in our lives. This is why I have decided to do the research for you guys.

According to the Humana and Medical Mutual websites there are a few key differences between a PPO policy and an HMO policy. Here are the main things that vary between PPO and HMO plans:

PPO:

·      PPOs do not require you to have a PCP (primary care physician) referral to cover the cost of seeing an specialist

·      You are still provided some form of coverage when you go to a medical facility outside of your network area, although you will pay a little more than if you go to a facility within a coverage area

·      If you go to an out of network healthcare provider, you may have to file a claim to get reimbursed for your expenses

·      Monthly Premiums tend to be higher than those of HMO plans and there is usually a sizeable deductible

HMO

·      PCP (primary care physician) referrals are required to receive coverage for a trip to a specialist

·      There is no out of network coverage for healthcare

·      Lower monthly premiums and deductibles than PPO plans

So which plan should you go with? Well, most of this will depend on the area you live in and which insurance company is your provider. If you live in a rural area or an area where you are considered out of network for most healthcare facilities, then I would recommend choosing a PPO plan because it provides you with more flexibility. If you live in a city or an area where the vast majority of healthcare facilities fall under your network, then I would recommend choosing an HMO plan.

I hope you guys have found this information helpful. Do you have any recommendations for choosing a healthcare plan? If so, please leave your advice in the comments.