Health Maintenence OrganizationA health maintenance organization (HMO) is a type of managed care organization that provides a form of health insurance to members of health plans across the country that is fulfilled through hospitals, doctors, and other providers with which the HMO has a contract. Unlike traditional indemnity health insurance plans, care provided in an HMO generally follows a set of care guidelines provided through the HMO's network of providers. Under this model, providers contract with an HMO to receive more patients and in return usually agree to provide services at a discount. This arrangement allows the HMO to charge a lower monthly premium, which is an advantage over indemnity insurance. In exchange for more affordable monthly premiums, members of HMOs are required to follow certain guidelines such as only seeing doctors that are within the network, and first obtaining a referral from a primary care physician before you see a specialist. These guidelines allow the HMO to control their costs. The availability of HMOs use to be limited to large employer groups, but are now available to individuals and families who purchase their own health insurance as well. When shopping for a HMO, be sure to compare quotes from multiple health insurance companies before you buy, to ensure that you are selecting the best plan for you and your family. |
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