Ever wonder what makes an HMO plan different from a PPO plan? Or, what exactly is a Consumer Directed Health Plan (CDHP)? Here are some basic facts:

When you sign up for an HMO plan, you select a Primary Care Physician (PCP) from a network of doctors. Your PCP is your first point of contact for most of your health care needs. HMO plans generally have lower premium costs than other types of plans.

Like HMO, PPO plans feature a network of physicians and hospitals. With a PPO plan you do not have to choose a PCP. PPO premiums are usually higher than HMO plans; however, you can save money by receiving care from in-network providers.

Consumer Directed Health Plans (CDHPs) often consist of a high-deductible plan, paired with a Health Savings Account. Premiums with CDHPs are often lower than other plans because you are responsible for a greater share of your health care costs. With an HSA, you can contribute to the account and use the money to cover a wide range of medical expenses.