Health insurance networks are groups of doctors and hospitals who are under contract to treat patients with a certain insurance plan.

If you're seeing a doctor, for example, who is part of the network your plan covers, then that coverage is considered in-network, which is generally cheaper than out of network care.

There are four main types of health insurance networks:

These network types each have pros and cons. The most affordable plans often give you the least flexibility when it comes to choosing your doctors, and require a referral from your primary care physician (PCP).

Affordable premiums but referrals required, and no out-of-network care.

HMOs are plans that have their own network of doctors, hospitals, and other healthcare providers. People who enroll in these plans must receive care from an in-network provider, which may mean there are geographic constraints. These plans generally have lower premiums, but also have more restrictions around which providers you can see, and most referrals to see a specialist must come from a primary care physician (PCP). Out-of-network care is generally not covered unless it's an emergency.
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​Example: Cara lives and works in Tulsa, OK. She sees a primary care physician that is in-network with her HMO plan. When she needs to see a neurologist, she gets a referral from her primary care physician to see one who is in-network. 

Out-of-network flexibility and no referrals, but premiums may be higher.

PPOs also have a network of healthcare providers that offer services at a lower cost to members. The main difference is that out-of-network providers and care are usually still covered, just at a higher cost. In this way, PPOs allow users to choose the doctor or specialist they see and they do not require referrals from a primary care physician (PCP). Generally, premiums are higher for these plans to account for the freedom in choice. You may also see separate deductibles for in-network and out-of-network care, which means you'll need to hit a separate hurdle before your out-of-network care is covered.
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​Example: Jorge lives in Indianapolis, IN, but often takes jobs across the entire state of Indiana. In order to be sure his care is covered while he's traveling, he selected a PPO. When he gets sick and needs to see a specialist in Bloomington, he asks a friend for a recommendation and goes to see that specialist, who he pays a little bit more, but is still covered. 

No out-of-network care, but no referrals required.

Like HMOs, EPOs have a specified network of doctors, hospitals, and other healthcare providers where members receive their care, and most out-of-network care is not covered unless it's an emergency. Like a PPO, though, members are able to see a specialist without a referral from a PCP.
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​Example: Justine lives and works in rural Nebraska, far from her PCP who she only sees once a year. This year, Justine decided she wants to start seeing a psychologist, who she would like to be able to start seeing without a referral from her PCP who she doesn't know very well.

Out-of-network flexibility, but you'll need a referral.

Like PPOs, POS plans have a network of healthcare providers where members can receive their care for the lowest cost. POS plans also allow members to receive care from out-of-network providers at a higher cost. Like an HMO, however, POS plans require referrals to specialists from a user's PCP.
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​Example: Chris lives in Austin, TX, but often travels to Houston for work. He rarely sees a doctor and doesn't expect to need to use his health insurance very often. Because he travels so frequently, though, he wants to make sure that if he gets sick or injured while traveling, he will be able to see a doctor that may not be in his network.