Health insurance assumes immense importance in today’s life as the medical expenses are shooting up and unexpected contingencies affecting the health of individuals are most likely to occur in daily life. It is generally found that most of the individuals prefer to safeguard themselves and their families from the drastic outcomes of such unforeseen events by way of health insurance and majority of the employers offer health insurance schemes to their employees. There are many institutions such as Health Maintenance Organisations, Preferred Provider Organisations, Medical service organisations and Physician Hospital Organisations which belong to the healthcare industry and provides assistance to those who have insurance coverage. This paper is an attempt to answer the following questions. Are HMOs superior to PPOs? And is it beneficial to choose HMOS? B. The Hypotheses: The hypotheses of the study is that while both HMOs and PPOs are beneficial it is the HMOs (Health Maintenance Organizations) that offer more benefits to the customers than that of the PPOs (Preferred Provider Organizations). The delimitations: The limitations of the study include the lack of authentic quantitative studies on the issue and the shortage of primary resources as most of the previous studies have been qualitative attempts. D. The definitions of the study: HMOs are defined as “organisations that receive premium dollars from subscribers in exchange for a promise to provide all health care required by that subscriber for a defined period” (Cleverley, Cleverley & Song, 2010, p.158
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Health insurance assumes immense importance in today’s life as the medical expenses are shooting up and unexpected contingencies affecting the health of individuals are most likely to occur in daily life…
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