III.A · Medical Expense: Individual Insurance
EPOs, and HMO vs. PPO vs. EPO
Plain version: exclusive provider organization (EPO) means what it says. The plan covers services only if the member uses doctors, specialists or hospitals in its network, except in an emergency.
Two results to know:
Routine care from a non-network provider is not covered, so the member pays the whole bill.
Emergency care is the exception to the network-only rule. The federal No Surprises Act also protects patients from unexpected out-of-network bills for emergency room visits.
Compare the three: - HMO: covers network care only, except emergencies; the PCP usually refers to specialists; the plan may require members to live or work in its service area. - PPO: network care costs less; out-of-network care is covered at an additional cost; no referral needed. - EPO: covers network care only, except emergencies. Shortcut: HMO and EPO generally do not cover routine out-of-network care; a PPO does, at a higher cost.
California law for insurer network plans: by agreement with its group policyholders, an insurer may limit payments under a policy to services from providers that charge the contracted alternative rates (Ins. Code §10133(c)). The insurer must keep up a continuous review of quality of care, utilization and costs under these contracts (§10133(d)).
Remember
· EPO = network only, except emergencies.
· HMO and EPO: no routine out-of-network coverage; PPO: yes, at higher cost.
· Routine non-network visit in an EPO: the member pays it all.
CA
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