Business Health Trust partners with Premera Blue Cross and Kaiser Permanente – two of the most well-respected insurance companies in Washington State. Premera’s most popular plan is a PPO while Kaiser Permanente offers both an HMO and PPO.
Understanding HMO and PPO Plans
While HMOs have been around since the early 1900s, PPOs were developed later to address some challenges associated with HMOs. However, this doesn’t mean that PPO is always the best choice – it depends on your needs and your employees’ needs. The main differences between HMOs and PPOs are the options for providers, accessibility to specialized providers, and the cost of plan monthly premiums.
What does HMO stand for?
HMO stands for Health Maintenance Organization.
What does PPO stand for?
PPO stands for Preferred Provider Organization.
Benefits of HMO Plans
Although each plan varies, in general, HMO insurance plans are more economical and come with lower monthly payments, lower deductibles, and lower prescription costs. In some cases, there may not even be a deductible. However, HMOs require you to work within a network of providers and obtain referrals from a primary care provider for specialist care. On the plus side, patients won’t need to file claims on their own for out-of-network care.
Benefits of PPO Plans
PPO plans offer more flexibility, allowing employees to choose from both in-network and out-of-network providers. They also provide better access to specialized care without needing a referral from a primary care doctor. However, this flexibility often comes with higher fees and potential restrictions on covered medical services. On the other hand, lower copays and dependable coverage can be expected for in-network care.
HMO vs PPO: Which is Better?
It depends on your employees’ needs. For employees who will be working with a single provider or looking for lower monthly insurance premiums, an HMO may be more suitable. For those who need more flexibility or specialized care, a PPO could be more beneficial.
Kaiser Permanente: HMO or PPO?
Kaiser Permanente offers both HMO and PPO plans. This flexibility can be important if offering a variety of options for your employees is a priority. Both insurers have large networks of highly respected primary care providers and specialists, but Premera’s PPO offering comes with the largest network.
Selecting the Best Health Plan for Your Employees
For more detailed information on choosing the right plan for your employees, visit Health Plans 101.