What is the difference between HMO and PPO insurance?

An HMO (Health Maintenance Organization) requires you to choose a primary care physician who coordinates all your care and provides referrals to specialists. You must use doctors within the network, and out-of-network care is generally not covered except in emergencies. HMOs typically have lower premiums and out-of-pocket costs. A PPO (Preferred Provider Organization) gives you more flexibility to see any doctor or specialist without a referral, and you can go out-of-network, though at a higher cost. PPOs have higher premiums but are better suited for people who want more control over their healthcare choices or have existing relationships with specific doctors outside a network.