HMO, PPO, EPO, POS–How Do They Differ and Which Should You Choose?

Finding the right health insurance plan for your needs can be time-consuming and confusing. Before you start researching plans, it’s important to understand the difference between an HMO, PPO, EPO, and POS health plan—the standard acronyms for the different types of managed care plans available in most areas. This article provides detailed definitions of each type of plan, their limitations in terms of choosing a provider, and what is and isn’t covered. Types of Health Insurance Plans When comparing plans, it helps to start with the basic definitions of each option. Important information to consider includes how much a plan costs, what it covers, and how you go about choosing a healthcare provider. Health Maintenance Organization (HMO) HMOs require primary care provider (PCP) referrals and won’t pay for care received out-of-network except in emergencies. However, they tend to have lower monthly premiums than plans that offer similar benefits but come with fewer network restrictions. HM...