Question

What’s the difference between health maintenance organizations and preferred provider organizations

Answer 1

HMO restricts coverage to those medical facilities or providers that are in a contractual agreement with the insurance company, a PPO is a preferred provider organization and a participant receives a better rate if he uses a provider that has a contract with the insurance, the patient is not required to stay within network but the services will be paid at a higher rate of reimbursement.

Step-by-step explanation:

Answer 2

To start, HMO stands for Health Maintenance Organization, and the coverage restricts patients to a particular group of physicians called a network. PPO is short for Preferred Provider Organization and allows patients to choose any physician they wish, either inside or outside of their network.