Suitable Healthcare Plan: Shift from PPO to HMO

Suitable Healthcare Plan: Shift from PPO to HMO
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Suitable Healthcare Plan: Shift from PPO to HMO
Different organizations offer different types of health insurance coverage for employees. Under the Preferred Provider Organization Plan (PPO), for instance, the insurance company contracted a network of service providers to provide services to an employee at a lower cost. On the other hand, under the Health Maintenance Organization (HMO) plan involves the restriction of coverage to care from providers the insurance company contracts. A critical difference between the two is that an employee is restricted to receiving services from an established network (Zhang et al., 2017). While this is the same for PPO, it allows employees to seek services outside the network, albeit at a price.
A key advantage of HMO is that it offers lower costs to healthcare. This is partly because they only cover in-network medical trea...