HMO plans typically have lower monthly premiums. You can also expect to pay less out of pocket. PPOs tend to have higher monthly premiums in exchange for the flexibility to use providers both in and out of network without a referral. Out-of-pocket medical costs can also run higher with a PPO plan.
What are the disadvantages of an HMO?
Cost: If you want to minimize your health expenses, it might be better for you to go with an HMO. You generally have lower health insurance premiums and lower out-of-pocket expenses. On the other hand, you do not have as much out-of-network coverage with an HMO.