Understanding The Difference Between an HMO and PPO

I know that a lot of people are still confused when they hear talk about hmo’s and ppo’s, regarding their health insurance.  So let’s break down simply what an hmo and ppo are.  An HMO means your health insurance plan has certain doctors and hospitals contracted to accept patients for them at a fixed price.  While this option is cheaper, thus more affordable, it tends to be very restricted and have a lot of rules.  Now, a PPO is a plan that gives you the choice of your doctor, within their usually large network.  However, if you choose a doctor out of the network, you’ll be paying the full cost yourself.  This kind of plan tends to be a little more expensive, but it is more popular due to the choices that are given.