Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?
a.
An HMO is paid a monthly premium for ongoing services while a PPO collects no money until after services are rendered.
b.
An HMO allows the insured individual to choose from a list of providers while a PPO assigns the insured individual the provider nearest his or her residence.
c.
An HMO requires the insured individual to go to a provider within their organization while a PPO allows the insured individual the option to receive care from a non-preferred provider at a higher cost.
d.
An HMO is usually paid for by the insured individual’s employer while a PPO usually requires the insured individual to pay a co-pay or deductible for services.