Do Most Employees Prefer a PPO or an HMO?

In general, employees who want a health insurance plan with no deductibles and low out-of-pocket costs prefer health maintenance organizations (HMOs).

Employees who don't mind paying deductibles and slightly higher premiums for greater physician choices and flexibility usually enroll in

HMOs often have more rules about the specialists used, so people who have needs for certain types of specialists' care often prefer the flexibility of the PPO. The higher out-of-pocket costs can be at least partially offset by Flexible Medical Spending Accounts.

On the West Coast, where medical costs tend to be higher than in other areas of the country, approximately two-thirds of insured people use HMOs and one-third use PPOs. On the East Coast and in the Midwest, the breakdown is approximately 50-50.