Deciding a health plan basically entails choosing between a Health Maintenance Organization (HMO) and a Preferred Provider Organization (PPO). Deciding which health plan to subscribe to now seems to be easier with the increasing prominence of the so-called "open ended HMOs," which incorporate the best of both plans. A health maintenance organization is actually a more affordable health insurance alternative as members are provided with primary care givers which will in turn refer them to specialists within approved networks of medical providers. Better rates for patients are already negotiated between the approved network and insurance firms. Medical treatments from providers outside the network, except for emergency treatments, are not covered.

Members of a PPO, on the other hand, can seek care from specialists outside the network but are offered lower charges when they opt to choose from within. At PPOs, while members are allowed to seek care from any professional in or out of the network, the incentive to stay within the network is greater. Patients are usually encouraged to choose from a limited list of approved networks. Aside from lower charges, at PPOs, physicians usually charge members to complete forms but, when they opt to seek help from a doctor in the network, filling out these papers are free. Utilizing services from outside the network would also require members to provide copies of all receipts, prescriptions and other documentation, but they are not assured that all expenses will be fully compensated.

An open ended HMO combines the features of HMO and PPO plans. It is oftentimes dubbed a "point-of-service" (POS) because members are given the option on how and from whom to receive services when needed. Herein, members enjoy the privileges of prepaid medical service and are provided primary care physicians but like in a PPO they can choose to see doctors that are not necessarily part of the HMO. This, of course, shall incur additional costs to the patient. Usually, the HMO will shoulder 80% of the bill while the remaining shall be charged to the member. On a positive note, once enrolled in open-ended HMO, the primary care physician provided to a certain member shall serve as his or her "point-of-service", referring him to other doctors that are not in the provider network.

Also, in an open-ended HMO, while members will have to go through the hassle of submitting bills, receipts and other documentation without the assurance that they will be fully compensated, at least they can expect to recover partial costs.

Most HMOs are now offering open-ended or POS products. These services are best recommended for those who are seeking for low premiums but do not mind a limited choice of medical providers.