Open Enrollment: Understand Your Healthcare Plans - PPO, HMO, HDHP

open-enrollment

PPO? HMO? HDHP? That Open Enrollment guide from HR might seem like alphabet soup, but Healthcare Hustlers don’t just blindly choose letters once a year. Our Hustlers know that choosing the appropriate healthcare plan can save or cost them thousands of dollars. We’ve outlined the most common options below.

Standard PPO Plan

Pros:
Low deductibles
Predictable office visit & prescription copays

Cons:
Highest premiums

Best For:
Medium healthcare utilizers, especially those who get frequent lab tests or office visits
Low risk takers

Slightly Cheaper PPO Plan

Pros:
Medium deductible
Predictable office visit & prescription copays

Cons:
High premiums

Best For:

Low to Medium healthcare utilizers, especially those who get frequent lab tests or office visits

Low risk takers

HMO Plan

Pros:
Medium premiums
Medium deductible
Predictable office visit & prescription copays

Cons:
Smaller networks (limited choice of providers)

Best For:
Hustlers who rarely leave their geographic area
Medium healthcare utilizers who are more cost conscious

Tip: Make sure your provider is in-network before you sign up for this plan. You can check on the insurance website.

High Deductible Health Plan (HDHP)

Pros:
Low premiums
Usually paired with a tax free Health Savings Account (HSA)

Cons:
High deductible
High cost sharing on all services
Unpredictable costs for office visits and prescription copays

Best for:
Extremely LOW healthcare utilizers - you only use preventive care, 100% covered prescriptions (such as birth control) plus the occasional doctor visit

Extremely HIGH healthcare utilizers - you are likely to meet your out of pocket maximum, at which point you will no longer be responsible for costs as long as you stay in-network

Hustlers with enough savings (in regular account or HSA) to cover their deductible in case of emergency.

Tips:

Have you already enrolled in a plan and need to find a provider? Check this out!