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Answer:
Medicare HMO and PPO plans differ mainly in the rules each has about using the plan’s provider network. In general, Medicare PPOs give plan members more leeway to see providers outside the network than Medicare HMOs do.
A provider network is a list of doctors, hospitals and other health care providers under contract with a health plan. Providers in a network agree to accept the plan’s payment terms for covered services, which helps plans manage costs. As a result, plans are able to share the savings with plan members through low out-of-pocket costs.
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