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To escape the tight restrictions of many health maintenance organizations (HMOs), more people than ever are flocking to preferred provider organizations (PPOs), believing that more choice, albeit at a higher cost, will be more satisfying. PPO enrollment has increased to 48 percent of all workers with health insurance from 35 percent just three years ago, according to a survey commissioned by the Kaiser Family Foundation, a nonprofit organization interested in health policy. At the same time, HMO membership declined to 23 percent from 27 percent.
Yet the assumption that PPOs, as a whole, are better than HMOs is unwarranted, according to a CONSUMER REPORTS survey of ...