What are the downsides of EPO insurance?

Asked by: Miss Camila Paucek I  |  Last update: September 17, 2023
Score: 5/5 (27 votes)

A disadvantage of EPOs is that members that must see an out-of-network provider have to pay all costs for these services with no reimbursement. Additionally, emergency services outside an EPO's network may mean no coverage. Once you enroll in a plan, there are strict rules on what allows you to change it.

Is an EPO a good plan?

The Benefits of an EPO Insurance Plan

It offers more flexibility than a HMO because there's no need for a referral from your PCP to receive specialist care. An EPO is competitively priced, too. It frequently offers more affordable premiums than a PPO. For many, an EPO is a happy medium between an HMO and a PPO.

Is an EPO worse than a PPO?

A PPO plan gives you more flexibility than an EPO by allowing you to attend out-of-network providers. On the other hand, an EPO will typically have lower monthly premiums than a PPO. But, if you're considering an EPO, you should check approved in-network providers in your area before you decide.

Is it better to have EPO or HMO?

EPO plans often have a more extensive network than HMO plans and do not give out-of-network benefits like PPO plans. One of the major benefits of EPO vs. HMO is that you won't have to choose a PCP, and you won't need a referral to see a specialist.

Why choose EPO over PPO?

The chief advantage to EPOs is that this coverage type often costs less than the PPO and other plan options. A disadvantage of EPOs is that members that must see an out-of-network provider have to pay all costs for these services with no reimbursement.

WHAT IS AN EPO? Exclusive Provider Organization

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How does EPO health insurance work?

An EPO plan offers in-network coverage only and does not require referrals for specialty care. EPO members may be required to select a PCP. Also, EPO plans don't cover out-of-network care unless it's an emergency.

Why is EPO more expensive than HMO?

EPO: A larger network makes life easier

Like HMOs, EPOs cover only in-network care. But the networks are generally larger. They may or may not require referrals from a primary care physician. Premiums are higher than HMOs, but lower than PPOs.

What is one disadvantage of having a PPO?

Disadvantages of PPO plans

Typically higher monthly premiums and out-of-pocket costs than for HMO plans. More responsibility for managing and coordinating your own care without a primary care doctor.

What does an EPO insurance plan mean?

What is an EPO? An Exclusive Provider Organization (EPO), is a type of health plan that offers a local network of doctors and hospitals for you to choose from. An EPO is usually more pocket-friendly than a PPO plan.

Why is PPO more expensive than EPO?

PPOs (preferred provider organizations) are usually more expensive. In exchange, you will likely get a larger network and the ability to see a provider outside that network. You can also see specialists without a referral. EPOS (exclusive provider organizations) combine features of HMOs and PPOs.

What is the greatest benefit of HMO and EPO insurance types?

Much like a HMO plan, you cannot go outside of your plan's network for care and you will not be covered if you choose to receive care from an out of network provider. One of the biggest advantages of an EPO plan is the lower cost. EPOs typically cost less than both HMOs and PPOs.

What is the biggest difference between HMO EPO PPO and POS healthcare plans?

In a nutshell, they'll generally say that HMOs and POS plans require a referral from a primary care doctor in order to see a specialist, while PPOs and EPOs do not, and that PPOs and POS plans cover out-of-network care, while HMOs and EPOs do not.

What is the monthly premium for EPO?

Costs of an EPO Plan

EPO health insurance plans typically cost yless than Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) plans with lower rates for care. According to the eHealth Index Report for 2019 Coverage, EPO premiums averaged $412 per month.

Does EPO have coinsurance?

Coinsurance: Coinsurance plans split the cost between planned members and healthcare insurance companies. For example, if you have an 80/20 coinsurance agreement, your EPO insurance will pay 80% of the cost of care while you are responsible for the remaining 20%.

What does Anthem Blue Cross EPO mean?

Exclusive Provider Organization (EPO): An EPO is a hybrid of an HMO and a PPO. EPOs generally offer a little more flexibility than an HMO and are usually less expensive than a PPO. Like a PPO, you won't need a referral to get care from a specialist.

What are the benefits of EPO?

Key Features of an EPO
  • Flexibility in choosing your preferred healthcare providers.
  • No referral needed to see specialists.
  • Reduced cost for in-network care.
  • No coverage for out-of-network care, except for emergencies.

Why do many patients prefer a PPO?

PPO plans give you more flexibility in deciding which healthcare providers you want to visit, but care is still usually more affordable if you stay within the network of providers your policy covers.

Why would a person choose a PPO over an HMO?

PPOs Usually Win on Choice and Flexibility

If flexibility and choice are important to you, a PPO plan could be the better choice. Unlike most HMO health plans, you won't likely need to select a primary care physician, and you won't usually need a referral from that physician to see a specialist.

Why is EPO cheaper?

The cost of a PPO plan will also increase the more often you take advantage of that freedom, as you are expected to cover a higher proportion of the costs incurred in seeing healthcare providers from outside the network. EPOs are usually cheaper due to the restrictions on which healthcare providers you can visit.

What does 0 coinsurance mean?

20% coinsurance: you are responsible for 20% of the total bill. 100% coinsurance: you are responsible for the entire bill. 0% coinsurance: you aren't responsible for any part of the bill — your insurance company will pay the entire claim.

Why is HMO so much cheaper?

Many HMO providers are paid on a per-member basis, regardless of the number of times they see a member. This makes HMO plans a more economical choice than PPOs. An HMO generally only covers care received from the plan's contracted providers, known as “in-network” providers.

Can I travel with EPO?

EPO (Exclusive Provider Organization)

With an EPO plan, you're only covered for emergency care and accidental injuries when you travel outside your network in the U.S. or the rest of the world. If you're outside of the U.S., call 1-800-810-2583 to find local hospitals.

Who pays for EPO?

Under EPO insurance, members are only responsible for paying their copayment, coinsurance and deductible.

How does EPO deductible work?

EPO deductibles are flat amounts, as shown on the Key Provisions chart. If you enroll any family members, you are responsible for two medical deductibles, one for yourself and one for all your family members combined.