Advantages and Disadvantages of HMOs

If the health insurance coverage you’ve been thinking of purchasing is with an HMO, you may want to first consider the advantages and disadvantages.

By exploring just what the pros and cons are of taking on this type of coverage, you can make sure youre making the right choice before signing on the dotted line.

Advantages of an HMO

Let’s first start with the advantages of going with an HMO for your health insurance coverage.

  • Lower premiums. The monthly premium you pay for your HMO is usually lower than with other types of health insurance coverage. This is because there are limitations on the physicians you are able to work with, as well as the services you can take advantage of.
  • Smaller co-payment. The co-payment you are likely to have is going to fall in the range of $5-$20. This is a very reasonable payment per visit and is a huge attraction to patients looking for a break in medical costs.
  • No deductibles. Another benefit of taking this type of coverage forgoing the worry of paying a deductible before receiving care.

Disadvantages of an HMO

While there are several benefits associated with this type of health insurance coverage, there are also some disadvantages to consider. They are:

  • Less accessibility. If you love having options with your coverage then you may not like an HMO. Because it offers lower prices all the way around, you don’t have access to as many doctors. In other words, you have to work with one primary care physician who will orchestrate who you are to see if you need help from specialists.
  • Fewer service options. Another disadvantage of this type of insurance is that there may some limitations on certain services. For instance, you may only be able to receive outpatient treatment for a predetermined amount of time before going over your limit.

Now that you know some advantages and disadvantages of the HMO, you can make a more informed decision on the type of health insurance coverage youd prefer. So what are you waiting for? The time is now to get insured!