What is the difference between an HMO and a PPO plan?

The primary differences lie in network flexibility and referral requirements:

• HMO (Health Maintenance Organization): Generally requires you to select a Primary Care Physician (PCP) and obtain formal referrals to see specialists. Out-of-network care is typically not covered except in emergencies.
• PPO (Preferred Provider Organization): Allows you to see any specialist without a referral and offers partial coverage for out-of-network providers, giving you maximum freedom of choice.