Health Insurance: Coverage and Types

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Health Maintenance Organization (HMO):
- Features: Requires policyholders to choose a primary care physician (PCP) and get referrals for specialist care.
- Pros: Lower premiums and out-of-pocket costs.
- Cons: Less flexibility in choosing healthcare providers.
Preferred Provider Organization (PPO):
- Features: Allows greater flexibility in choosing doctors and specialists, with fewer restrictions on out-of-network care.
- Pros: More freedom to choose healthcare providers.
- Cons: Higher premiums and out-of-pocket costs.
High Deductible Health Plans (HDHP):
- Features: Lower premiums but higher deductibles. Often paired with Health Savings Accounts (HSAs) for tax advantages.
- Pros: Lower premiums, good for individuals who don’t expect frequent medical care.
- Cons: High deductibles can be a barrier to care.

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