Quick Definition

Health Maintenance Organizations (HMOs) are a type of managed care organization that provide a wide range of healthcare services through a network of providers who agree to supply services to members.

Examples

• 1An individual enrolls in an HMO plan and receives primary care from a designated physician within the HMO network.
• 2A family chooses an HMO for their health insurance, which covers all preventive care at no extra cost as long as the services are obtained from HMO-affiliated providers.
• 3An HMO member requires specialist treatment and obtains a referral from their primary care physician to see an in-network specialist.
• 4An employer offers an HMO plan to employees, emphasizing the plan’s lower premiums and out-of-pocket costs for in-network services.

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