PPO vs HMO: Which One Is Better for the Self-Employed?

 

PPO vs HMO: Which One Is Better for the Self-Employed?

If you're self-employed, choosing a health insurance plan can feel overwhelming. Two of the most common options — PPO and HMO — offer very different benefits.

Let’s break down the differences and help you decide which one fits your freelance lifestyle in 2025.

🩺 What’s the Difference Between PPO and HMO?

Feature	PPO (Preferred Provider Organization)	HMO (Health Maintenance Organization)
Network Flexibility	See any doctor, in or out of network	Must use network providers only
Referrals	Not required to see specialists	Required from primary care physician
Premiums	Higher	Lower
Out-of-Pocket Costs	Lower flexibility = more cost	Better for routine care

🎯 Pros & Cons for Self-Employed Workers

✅ PPO Pros

• Freedom to choose any provider
• Easier access to specialists
• No referrals required

❌ PPO Cons

• Higher monthly premiums
• Higher deductibles

✅ HMO Pros

• Lower premiums
• Coordinated care
• Great for preventive health

❌ HMO Cons

• Limited network
• Referrals required
• Not ideal if you travel often

💡 Which Should You Choose?

Your Situation	Best Plan Type
You travel often	PPO
You want lower premiums	HMO
You have chronic conditions & need specialists	PPO
You prefer simplicity & one doctor	HMO

📌 Cost Comparison Example (2025)

Plan Type	Monthly Premium	Specialist Access	Deductible	Flexibility
PPO	$550	No referral	$1,500	High
HMO	$330	Needs referral	$1,000	Low

📎 Helpful Links

• eHealth – Compare PPO vs HMO
• Healthcare.gov – Self-Employed Guide
• IRS – Deducting Health Insurance Premiums

📢 Call-to-Action:
Don’t guess — compare your 2025 plan options today with eHealth. Get quotes in minutes, even if you're self-employed.