Asked by Kendrick Brown Jr. on Jul 26, 2024
Verified
How do HMOs and PPOs differ from each other and from traditional health care providers?
HMOs
Health Maintenance Organizations, a type of health insurance plan that provides healthcare services to members through a network of doctors, hospitals, and other healthcare providers.
PPOs
Preferred Provider Organizations, a type of health insurance plan that offers a network of healthcare providers you can use for your medical care.
Traditional Health Care
Healthcare practices based on historical and cultural traditions, often contrasting with contemporary Western medicine.
- Implement insights into multiple types of staff benefit plans, including those that facilitate family welfare and health care alternatives.
Verified Answer
HS
Helala SeddiqiJul 30, 2024
Final Answer :
PPOs are health care plans that contract with health care professionals at a reduced fee. They differ from HMOs in that they do not provide benefits on a prepaid basis. Often, the PPO does not require employees to use providers in the network, but it pays a larger share of the cost of services from PPO providers. For example, the employee might pay 10 percent of the cost of a test by an in-network provider and 20 percent if the employee goes out of the PPO network. PPOs are the most widely used health plan among U.S. employers.
Learning Objectives
- Implement insights into multiple types of staff benefit plans, including those that facilitate family welfare and health care alternatives.