A PPO is a Preferred Provider Organization. This is an organization of Physicians and hospitals that are contracted by insurance companies at discounted rates. By selecting the option of purchasing a Major Medical Insurance Plan with a PPO, the insured is offered a lower premium. The insured may chose any provider of service, but claims reimbursement is far greater when PPO providers are accessed. An HMO is a Health Maintenance Organization, and it is a business that manages the medical options of its members. In return for this management, members are offered generally lower premiums and out of pocket deductibles, but also less freedom of choice regarding medical care. A newer plan option, the POS, Point of Service, is a type of option offered by HMO’s. It allows its members to receive claims coverage outside of the HMO at a lower level of reimbursement. Both the PPO and the HMO are available to groups and individuals, while the POS is currently only available as group coverage.
