How do PPOs compare with HMOs?

Preferred Provider Organizations (PPOs) are organized networks of doctors, hospitals, and other health care providers who provide discounted rates to their members. You can have expenses covered even outside the network but they'll cost considerably less within the network. PPOs allow you to choose a doctor, a hospital, or a specialist from among the lower cost, in-network health care providers plus those outside the network. You may be asked to choose a primary care physician, but you will be allowed to see a specialist outside the network without a referral with a portion of the cost covered by your health plan.  PPOs generally will require you to pay an annual deductible and it may be higher when you see a doctor outside the network. You may even be required to pay most or the entire doctor bill.  PPO plan’s covered items, rules and fee structures vary so read the actual plan description carefully.