What does HMO stand for?

Health Maintenance Organizations, commonly referred to as HMOs, are a type of managed care health insurance plan that provides a range of healthcare services to members for a fixed annual fee. The primary purpose of an HMO is to lower healthcare costs while providing patients with access to a network of doctors and hospitals. Members usually select a primary care physician who coordinates their care and provides referrals to specialists within the network.

This structure is designed to encourage preventative care and reduce the likelihood of unnecessary medical procedures, ultimately aiming to keep healthcare costs in control. In contrast, the other options refer to terms that do not accurately describe HMO structures or functions. They may suggest alternative healthcare organizational models or terminologies, none of which represent the definition of HMO as it relates to health insurance.