Healthcare is a benefit that is often offered to employees as a way to add on to the value of a compensation package. The types of health care plans are varied and offer different types of coverage. Generally, employers are able to obtain group healthcare policies that are less expensive and afford their employees better choices at better prices than would be available to the employee with an individual healthcare plan. However, in certain circumstance, employees could be better served to get a family health care plan and forgo an employer’s healthcare offers. This is unique to each situation and employer. The basic rule of thumb in health care is that options cost money. The most common types of healthcare options offered by employers are HMOs, PPOs, and POSs.

HMO (Health Maintenance Organization)

HMOs offer reduced costs along with a reduction in care choices. HMOs have a list of contracted healthcare providers such as doctors and hospitals that make up the HMO’s network. Individuals pay a monthly premium to join a HMO. The HMO will provide financial help with medical expenses when an individual gets treatment from a health care provider who is a member of the approved network of doctors, hospitals, and clinics. However, when individuals receive care from a doctor, hospital, or clinic outside of the network, the HMO will not help with expenses. Special exceptions are made in certain medical emergencies.

PPO (Preferred Provider Organization)

The PPO offers individuals more choice but, increased costs. Similar to HMOs, individuals pay monthly premiums but can choose to see healthcare providers that are outside the network covered by the PPO. If an individual chooses to use a doctor, clinic, or hospital that is not part of the PPO network, they can expect to incur higher co-payments for the services provided.

POS (Point-of-Service Plan)

This plan attempts to combine low cost with increased choices. POS plans require individuals to choose a primary care physician that is a member of the POS’s network. This primary care physician offers healthcare for a discount price. However, a referral from this primary physician is needed before an individual can see a specialist. The POS plan will only help with costs when a referral is obtained.

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