What does HMO stand for in health insurance?

In the context of health insurance, HMO stands for Health Maintenance Organization. This term describes a type of managed care organization that provides health insurance coverage through a network of doctors and hospitals. Members of an HMO are typically required to choose a primary care physician (PCP) who coordinates their healthcare services. This model emphasizes preventive care, helping to maintain the health of members and manage costs by promoting regular check-ups and wellness programs.

Choosing HMO as a health insurance option often means lower premiums and out-of-pocket costs when compared to other types of plans, like PPOs (Preferred Provider Organizations). However, it also involves certain restrictions, such as needing referrals from the primary care physician to see specialists. Understanding the structure and benefits of an HMO is essential for individuals evaluating health insurance plans, particularly in how it affects their choice of healthcare providers and associated costs.