Health Maintenance Organization (HMO)
With an HMO, group members are required to obtain health care services from doctors and hospitals affiliated with the HMO. Generally, HMO members are required to designate a primary care physician (PCP) within the HMO network to coordinate referrals and direct health care decisions. HMOs offer a comprehensive package of covered health care services in return for a monthly premium. Usually, an HMO charges a small co-payment, depending on the type of service provided.
Preferred Provider Organization (PPO)
PPOs do not require members to designate a provider, however, using an in-network provider usually saves the member the most amount of money on healthcare services. If using an out-of-network provider, the health care services might not be covered- it’s always a good idea to check with the PPO first. PPOs generally require a co-pay for physician visits, and deductibles must be met before some services will be covered.
Health Savings Account (HSA)
An HSA combines a high deductible/lower premium health insurance plan (PPO) with a tax-favored savings account. Both employer and employee can make tax-free contributions to this account, and account funds can be used towards deductibles and qualified medical expenses. Once the deductible is met, the insurance picks up the cost. Money left in the savings account accrues interest and belongs to you.
MEC Plans
Minimum Essential Coverage plans are affordable plans that cover the minimum essential benefits as required the Affordable Care Act, and allow employers and employees to avoid penalties for non-compliance of the ACA.
