Health Maintenance Organization (HMO)

A Health Maintenance Organization (HMO) is a type of managed care health insurance plan that emphasizes preventive care and coordination of healthcare services through a network of providers. HMO members typically choose a primary care physician (PCP) who manages their healthcare needs and coordinates referrals to specialists within the network. HMOs often require members to obtain authorization from their PCP before seeking specialty care, and they may offer lower out-of-pocket costs but have limited coverage for out-of-network services.