HMO – Health Maintenance Organization plans are offered by private insurance companies. With HMO plans, you typically have a local network of healthcare providers, doctors and hospitals. You will most likely have to choose a primary care physician and this doctor will have to be the one who refers you to see a specialist. Only in emergency and urgent care situations are you able to receive coverage outside of the plan’s network unless you are paying out of pocket.

PPO – Preferred Provider Organization plans are offered by private insurance companies. PPO plans typically have a national network or doctors, other healthcare providers and hospitals. You’re not required to use someone within the network. However, if you use this network, you pay less. If you go outside of the network for healthcare, you will most likely pay more. When you have a PPO plan, you’re not required to choose a primary care physician and you don’t have to get a referral to see a specialist.