An HMO, or Health Maintenance Organization, is a type of managed care health insurance plan. HMOs typically offer lower costs, but have a more restrictive provider network, and you will have to coordinate your medical care through a primary care physician (PCP). HMOs have their own network of doctors, hospitals, and other healthcare providers who have agreed to accept payment at a certain level for any services they provide. This allows the HMO to keep costs in check for its members. HMOs often provide integrated care and focus on prevention and wellness. HMOs usually limit coverage to care from doctors who work for or contract with the HMO, and generally wont cover out-of-network care except in an emergency. An HMO may require you to live or work in its service area to be eligible for coverage. HMOs were created as lower-cost alternatives to traditional payment models of medical care, like Fee-for-Service plans, where coverage is provided no matter what provider or hospital you use. HMO plans typically have low or no deductibles, making them cost-effective for individuals and families seeking predictable healthcare expenses. HMOs operate through a network of healthcare providers and facilities, allowing members to access medical services within the network. HMOs are a type of Medicare-approved health plan from a private company that you can choose to cover most of your Part A and Part B benefits instead of Original Medicare.