Choosing a health care plan is an important decision for many people which may create confusion. There are three common health care options such as PPO, EPO and HMO. Knowing the benefits as well as drawbacks of each type can help you to choose the plan that matches your own specific health care needs. There is some difference between PPO, EPO and HMO which can be explained as follows :

• PPO (Preferred Provider Organization)
  A Preferred Provider Organization is a managed care organization of hospitals, medical, doctors, and other health care providers contracted with a third-party administrator or an insurer to provide health care at a reduced cost to the administrator's or insurer's clients. It allows patients to choose any physician within the network, but patients must pay the cost for medical treatment and then request for reimbursement. Unlike HMOs, the patients of PPO have the option to consult with a physician outside the network for an increased share of cost.
• EPO (Exclusive Provider Organization)
  An EPO is a variation on the PPO. It is a type of Preferred Provider Organization which restricts patients to choose physicians within the network in order to qualify for plan benefits. It provides the same kind of insurance plans, but on a smaller scale. It has a claims network like a PPO, but has no out-of-network coverage. With an EPO the company will choose the primary health care provider for you, and you will be required to follow his instructions and advice.
• HMO (Health Maintenance Organization)
  A Health Maintenance Organization (HMO) provides a form of health insurance coverage in Switzerland and United States that is fulfilled through doctors, hospitals, and other providers with which the HMO has a contract. The care provided in the HMO follows a set of guidelines provided by the HMO's network of providers. In this model, providers contract with an HMO for receiving more patients and in return agree to provide services at a discount.

Thus, there is very little difference between the three systems, but it becomes difficult for people to really understand the real meaning of them and hence, it is important to study their differences properly.