Health Maintenance Organizations (HMOs)
Health Maintenance Organizations (HMOs) are a type of managed care health insurance plan that provides a range of medical services to members for a fixed monthly fee. Members typically choose a primary care physician (PCP) who coordinates their healthcare and refers them to specialists when necessary. This model emphasizes preventive care and cost control.
HMOs often require members to use a network of doctors and hospitals to receive full benefits. If members seek care outside this network without a referral, they may face higher out-of-pocket costs. This structure aims to promote efficient healthcare delivery while managing expenses.