HMO Insurance Plans

Apart from regular insurance, another type of managed health care exists in the form of HMO insurance Plans. Health Maintenance Organizations (HMOs) operate on a somewhat different level from standard insurance and take another approach to providing health care.

In the olden days, each person used to have a primary physician whom you used to call for all sortsof needs. This one person would take care of all your complaints regardless of what it was and he or she would make the decision to take the case further. HMO insurance plans are something like that. They require each person to have a Primary Care Physiciain (PCP) who will evaluate your complaints, and pass you onto a specialist if they think the situation warrants it.

It is a well known fact that over 80% of problems do not need a specialist. And indeed, in today's world where there are specialists for everything, it can be very bewildering for a person to know what doctor to visit. Should you go to a dentist or an orthodontist? An opthalmologist or an optometrist? Wouldn't it be nice if there was just one experienced GP you could go to for all your needs and he or she would tell you what to do? HMO's allow us to enjoy this luxury.

Advantages of HMO Insurance Plans

HMO plans enjoy several advantages over the more regular Insurance plans. The first and most obvious advantage is the cost. HMO insurance plans are much cheaper than their PPO (Preferred Provider Organization) based cousins. You usually have to pay a small monthy premium and no more. PPO plans require you to pay a certain amount of money (also called a co-pay) for each type of visit. An HMO plan will not require this or if it does, the amount will be extremely low. The monthly premiums that you pay are very low as well. If you find your insurance premiums skyrocketing, an HMO might seem like a very attractive alternative.

The second major benefit is that it is in the HMO's best interests to ensure that you are healthy and don't develop problems. Since the payments you make are nominal, the HMO's earn their profits (yes, they need to make profits like all of us) by keeping expenses down and they do this by reducing the chances that you will need expensive health care. This is why HMO's place such great importance on health maintenance. In fact, the name HMO is an acronym for Health Maintenance Organizations. HMO insurance plans will often have free preventive checkups to test for potential problems before they arise thus keeping you healthy.

Another benefit of HMO's is that they don't have deductables. With regular insurance, you are asked to pay a certain amount before the insurance company becomes liable to step in with their contribution. In contrast, the HMO's pay for all your healthcare greatly limiting your out of pocket costs.

HMO insurance plans have certain disadvantages too. These come in the form of reduced flexibility. You can't go to a specialist unless your PCP recommends it. This upsets people who like to have more control over their choice of doctors. In addition, if you want to choose a particular PCP, then that doctor must be part of your HMO plan.

All in all, HMO plans are emerging as a new way to provide managed health care. The low out of pocket costs and the use of preventive techniques make it an attractive option for all to consider. Just remember that HMO's work in different ways and each will be slightly different in it's operations and costs from the other. Make sure that you use this site to compare all possible plans and find one that works for you.

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Michael Horvat is a health insurance expert and broker with HealthQuotes.com in Colorado Springs, CO. If you are searching for Colorado health insurance plans or quotes, please give Michael a call anytime at 800-345-0789.

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