With an HMO, you usually have low monthly premiums and very little coinsurance or copay when you see your physician. With a PPO, traditionally you pay higher monthly premiums, and you have higher copays and coinsurance when you see your medical provider.

Being enrolled in a health maintenance organization (HMO) means that all or most of the health care you receive will be from a network provider. HMOs require you to choose a primary care physician who will manage and arrange all of your health care. They will become your personal doctor and provide all of your basic health care services.

If enrolled in a preferred provider organization (PPO), you will be able to choose from a network of preferred providers. When visiting a preferred physician, PPOs require you to pay for your annual deductible and any co-payments at your visit. If you choose to visit a physician that is outside the preferred network, you will be responsible for paying the full amount, and to be reimbursed you must submit a claim with your PPO.