An HMO (Health Maintenance Organization) is a type of health insurance plan that provides coverage through a network of doctors, hospitals, and other healthcare providers who have agreed to offer services at set rates. Members typically pay a fixed monthly or annual premium for access to these services

. Key features of HMO insurance include:

• Network-based care: You usually must receive care from providers within the HMO’s network to have costs covered, except for emergencies or urgent care outside the area

• Primary Care Physician (PCP): Most HMOs require you to select a PCP who coordinates your care and provides referrals to specialists within the network

• Lower costs: HMOs often have lower premiums and out-of-pocket costs compared to other plans because providers accept discounted rates in exchange for a steady patient volume

• Referrals and approvals: You generally need a referral from your PCP to see a specialist or get certain services, helping control costs and ensure care is medically necessary

• Focus on prevention and wellness: HMOs emphasize integrated care with an aim to maintain health and prevent illness

In summary, an HMO plan offers managed care with cost savings through a restricted provider network and coordinated care via a primary care physician, making it a budget-friendly option for those willing to accept network limitations and referral requirements