Health Management Organizations (HMOs)

Health Management Organizations (HMOs) are a type of health insurance plan that provides a network of doctors and hospitals for members to use. When individuals enroll in an HMO, they typically choose a primary care physician (PCP) who manages their healthcare. To keep costs lower, HMOs usually require members to get referrals from their PCP before seeing specialists and emphasize preventative care. While HMOs often have lower premiums and out-of-pocket costs, they limit coverage to a specific network of providers, meaning members may pay more for care received outside this network.