What are two common types of health insurance plans?

The selection of HMO and PPO as common types of health insurance plans is accurate because both are widely recognized and utilized approaches to health coverage.

Health Maintenance Organizations (HMOs) are characterized by their focus on preventive care and requiring members to choose a primary care physician. This model emphasizes coordinated care, which can lead to lower overall costs for both providers and patients, as it often includes a more integrated approach to managing patient health and avoiding unnecessary services.

Preferred Provider Organizations (PPOs), on the other hand, offer greater flexibility in choosing healthcare providers, allowing members to receive care from both in-network and out-of-network providers, albeit with different cost structures. This type of plan often appeals to those who value having a wider selection of healthcare options and are willing to pay higher premiums for that flexibility.

Together, HMOs and PPOs cover a broad spectrum of healthcare needs, making them standard offerings in the insurance market, unlike Flexible Spending Accounts (FSA), Employee Assistance Programs (EAP), or Health Savings Accounts (HSA), which serve different purposes or are not standalone insurance plans.