If you have watched any news program in the last two years you have surely heard of an HMO, a PPO and a PSO. However, unless you have had trouble with or have had to make changes to your existing health coverage you may not know what all these letters stand for and what effect they have on your health insurance. Don't fret! You are not alone! There are many who seem to be either embarrassed to ask the specifics of these details or who simply do not have the time to find out what options that they have. In some cases, employers will only offer one type of health care plan, and in that case we are forced to either accept this plan or to pay outrageous prices for independent coverage. It is important that you educate yourself on the differences in the types of coverage or plan that your company is able to offer to you and your family.

One type, the HMO, which stands for Health Maintenance Organization, works by offering employees discounted rates for their health care by networking with specific doctors. They also network with the hospitals and clinics with which these doctors are affiliated. In the case of an HMO plan, the employee is required to use these doctors, hospitals, and/or clinics if they are to receive the benefits of their employer's health care plan.

Another type of plan that is commonly offered to employees is a less restrictive plan called a PPO. PPO, or Preferred Provider Organization, allows the employee to choose their doctor. Those doctors who are networked with the employer is offered at a lower rate than those who are not, however, the employee will still be able to see any doctor or visit any hospital at a somewhat reduced rate. The rate of this savings will depend solely on whether or not that the physician that is seen is a part of the network or not.

Lastly, a POS, or Point of Service plan, the employee is able to choose their own doctor or hospital provided that doctor or hospital has chosen to accept that particular brand of insurance. This plan restricts visits to specialists unless referred by the doctor that was chosen in order to obtain the greatest discounts.

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