Health Insurance Options – Pros and Cons

HMOs – Health Maintenance Organizations 

Pros: generally have few out-of-pocket costs. Doctors who are registered with HMOs usually agree to provide some of their services at a discount, keeping HMO costs relatively low.  

Cons: HMOs try to reduce costs by sending all patients to a primary care physician who will provide referrals to other doctors, in a specialized field, within the HMO when necessary. Consultation with a doctor outside of the HMO network or without the referral of your primary care physician will not be covered unless in case of emergency. 

HMO is a bare-bone plan and is best suited for a young and healthy new employee.