A Health Maintenance Organization (HMO) is a type of health insurance plan that provides coverage for medical services through a network of healthcare providers. HMOs typically require policyholders to choose a primary care physician who serves as their primary point of contact for healthcare needs. Policyholders must obtain referrals from their primary care physician in order to see specialists or receive certain types of medical care.
HMOs generally have lower monthly premiums than other types of health insurance plans, such as Preferred Provider Organizations (PPOs), but they may have more restrictions on the types of healthcare services that are covered. Policyholders may also have to pay copayments or coinsurance for medical services, and there may be limits on the number of visits or services that are covered.
It is important to carefully review the terms of an HMO plan to understand the costs and benefits of the coverage. HMOs may be a good choice for individuals and families who are looking for a lower-cost insurance option and are willing to work within the restrictions of the plan.