What’s Right For Me? HMO vs. Major Medical Plans.
If you’ve been researching your options for a healthcare plan, whether it’s a brand new one plan or you’re comparison shopping, it’s vital that you understand the different policies available to you. Below is information that may be useful to you during your search.
A common healthcare plan option you may have heard of is the HMO, or Health Maintenance Organization. This type of plan is popular because it is commonly less expensive than traditional major medical plans for the insurer. In an HMO, you pay a monthly premium and a small co-payment at doctor’s visits when visiting a doctor in the network provided by the HMO. Wellness programs are quite common in the HMO plans. These include preventive medicine such as immunization, regular doctor visits and mammograms. Some HMOs even offer vision and dental coverage.
Another more traditional option is a Major Medical healthcare plan. These plans do allow the insured person to visit the doctor of their choice so there are no network limitations. With a Major Medical plan, you pay an annual deductible before being reimbursed by the insurance company. You will also pay a monthly premium which is usually lower than that of an HMO plan because of the annual deductible. Another bonus is that once the deductible has been met, the health insurance provider starts covering most of your costs. Often, preventive healthcare costs are not covered under a Major Medical plan. The main benefit to this type of plan is that you can cap your out-of-pocket medical expenses for the year.