When buying health insurance, your choices typically fall into one of three categories: Traditional fee-for-service health insurance plans are usually the most expensive choice, but they offer you the most flexibility in choosing health care providers. Health maintenance organizations (HMOs) offer lower co-payments and cover the costs of more preventive care, but your choice of health care providers is limited to those who are part of the plan. Preferred provider organizations (PPOs) offer lower co-payments like HMOs but give you more flexibility in selecting a provider. As your specific needs are individual to you, buy the health insurance that makes the most sense for you and your needs.