Of all major medical insurance options in an area, HMOs are usually the cheapest. This is true if you consider monthly premiums and if you consider potential expenses for co-payments, deductibles, and coinsurance. However, insurance companies control costs by imposing lots of rules.
The Advantages and Disadvantages of HMOs
The biggest disadvantage of an HMO is the rules. People who join an HMO should expect to get virtually all healthcare through the network. In addition, covered visits to specialists, even if they are on the network, have to come from a primary doctor. If people can find a good doctor that they like on the plan, this still might be satisfactory in exchange for lower premiums and better coverage.
Typically, emergencies are exceptions to these rigid rules. Also, HMOs may make exceptions in the rare event that they lack a certain kind of provider, but these situations should always get cleared in advance.
Of course, the reason that HMOs are popular is because they are usually cheaper. With Medicare Advantage plans, HMOs are by far the most popular kind of plan. With regular health insurance for people under 65, PPOs are still more common.
Why not let us work with you to find the best local health insurance plans? Contact us at Trusted Senior Specialists for help.