How do health maintenance organization (HMO) plans operate?
A health maintenance organization (HMO) offers the lowest out-of-pocket expenses for consumers but is much less flexible than a PPO or indemnity insurance plan. In an HMO, a patient selects a primary care physician. The patient must then get approval from that primary care physician before being allowed to visit a specialist. HMO’s traditionally focus on preventive care, and have a reputation for not covering newer (especially more expensive) medical procedures, arguing that they are experimental. That being said, HMOs often deliver excellent care much more efficiently than their PPO or Indemnity brethren.
