What is Health Maintenance Organization (HMO)?

Health Maintenance Organization (HMO) is a type of managed care health insurance plan that provides healthcare services to its members through a network of doctors, hospitals, and other healthcare providers. In an HMO, members are typically required to choose a primary care physician (PCP) who oversees and coordinates their healthcare. Referrals from the PCP are usually required to see specialists. HMOs emphasize preventive care and health management, aiming to reduce healthcare costs by encouraging members to use in-network providers and services. The plan often has lower premiums and out-of-pocket costs compared to other types of insurance plans.