Buying health insurance is important. But choosing the best plan for you can become a daunting task given the options in the market. It helps to know pros and cons of each plan before buying one.
Here is a lowdown on Health Maintenance Organization (HMO).
Health Maintenance Organization (HMO)
HMO is a plan that covers your healthcare with the help of a primary care physician (PCP). Your PCP takes care of your health needs and coordinates with other doctors included in the plan. HMO requires you to pay a monthly premium for your healthcare coverage.
Advantages of HMO
- With HMO policyholders can keep healthcare costs to a minimum. Services such routine physicals are available at no extra charges.
- Policyholders can choose their treatments to include in their plan to lower the costs.
- Policyholders also don’t need to file claim forms. Just presenting their HMO card at the healthcare provider’s office is sufficient to use the insurance.
Disadvantages of HMO
- With HMO, policyholders can avail services of only doctors in their network. Consulting with other doctors not in network may mean huge medical expenses.
- Specialist visits are only covered if your PCP recommends them.
- HMO includes co-payments with every visit, which can add to your healthcare cost.