An exclusive provider organization, or EPO, is a health insurance plan that only allows you to get health care services from doctors, hospitals, and other care providers who are within a certain network. Your insurance will not cover any costs you get from going to someone outside of that network. The only exception is that emergency care is usually covered.
Many EPO insurance plans require you to select a primary care physician (PCP). A PCP is a doctor who can provide preventive care as well as treatment for minor and chronic illnesses. (You may also see people refer to a PCP as a general practitioner, family doctor, or pediatrician in the case of PCPs for children.)
Another defining feature of EPO plans is that you do not need to get a referral from your primary care physician in order to see a specialist physician. Other health insurance plans that require you to have a PCP also require you to get a referral from your PCP if you want the insurance company to pay for a visit to a specialist.
While an EPO restricts your health care options to the providers in your local network, this usually means you get lower monthly premiums because the providers in that network have contracts with your insurance company. On the flip side, an EPO health insurance plan often requires you to pay more out of pocket before your insurance starts covering your medical expenses.
In this article:
- How an EPO plan works
- 3 alternative health insurance plans
How an EPO plan works
An EPO is a type of managed care plan, which means that your health insurance plan will cover some of your medical expenses as long as you visit a health care provider — doctor, hospital, or other place offering health care services — within a particular network. You will have to pay for some of the cost on your own, through copays, but your insurance company will step in to cover some of the costs once you hit a certain level of spending, known as your deductible.
EPO plans and out-of-network providers
There are several types of managed care health insurance plans, and they differentiate themselves largely on whether you can go to out-of-network providers and how much your insurer will pay for if you do go out of network.
An EPO insurance plan will not cover the expenses you incur from going to out-of-network providers. This probably isn’t a big deal if you’re just getting care near home, but consider that you may have to pay out of pocket if you travel somewhere and want to visit a doctor outside your network.
The big exception is that emergency care is covered. According to the Affordable Care Act, also known as the ACA or Obamacare, health insurance companies cannot charge you higher copayments or coinsurance for out-of-network emergency care. So if you need to take an ambulance or be admitted to a hospital because of an emergency, an EPO will cover the costs.
However, your insurance will not cover the costs unless they are for an emergency. Your out-of-network expenses also may not count toward your normal deductible. If you want to make an out-of-network hospital stay in a non-emergency situation, you likely need to get approval from your insurer beforehand. Without prior approval, your insurance likely won’t cover the hospital bill. Check the details of an individual plan to learn more of what’s covered.
Seeing a specialist with an EPO
Another selling point with EPO plans is that you do not need a referral to see a specialist. Other plans that require you to choose a primary care physician usually don’t cover the cost of seeing a specialist unless your PCP specifically refers you to that specialist. At the same time, seeing a specialist may leave you with higher copays or coinsurance.
The cost of EPO plans
In order to get insurance coverage with an EPO, you will need to pay a monthly premium, just like you do for other types of health insurance. The cost of your premium depends on where you live and the specific plan you have, but EPO plans generally offer middle-of-the-road premiums.
One consideration as you look at premium costs is what kind of plan you’re getting. Cheaper insurance is often an HMO plan, which is more restrictive in many cases. More expensive plans often offer more freedom to visit out-of-network providers. The next section breaks down the common alternatives to EPO plans.
How to get an EPO plan
If you get group health insurance through your employer, you can only choose an EPO plan if your employer offers one.
If you don’t get insurance coverage through work, you can get an EPO through the marketplace. The Affordable Care Act created a marketplace where individuals can buy a health insurance policy. You will find EPO plans, so you can compare the costs and the specific plan benefits in order to choose the best option for you. In addition to your monthly premiums, make sure you consider the cost of copays (both in and out of network), coinsurance, deductibles, and the out-of-pocket maximum, which is the maximum you will ever pay before insurance starts covering 100% of your costs.
Whether you get a plan through work or the marketplace, you can only choose a new plan during Open Enrollment, a period from November to December when anyone can get an insurance policy. If you change jobs or experience a major life change, like the birth of a child, you may qualify for Special Enrollment, which allows you to enroll in a new plan outside of the Open Enrollment period.
–Derek Silva Policygenius