HMO Health Insurance

There are so many types of health insurance to choose from, it’s no wonder people often feel helpless about it.

At InusranceUSA.com we provide you with thorough and up-to-date information on all types of health insurance.

Typically, health insurance can be divided into two overarching categories: traditional and managed care. These can further be broken down into four basic plan types:

  • Traditional indemnity health insurance; now often called Fee-for-Service (FFS) plans.
  • Preferred Provider Organization or PPO
  • Point-of-Service or POS
  • Health Maintenance Organization HMO

Health Maintenance Organization

A Health Maintenance Organization (HMO) is one of the more affordable individual health insurance alternatives. HMOs usually have an extensive network of doctors, specialists, hospitals, and clinics, plus much more. HMO networks often encompass a wide and varying range of healthcare professionals so you’ll have convenient access to all your healthcare needs.

The concept of HMO health insurance began in the 1960s and was later promoted by the Nixon Administration as a solution to the rising cost of healthcare resulting in the Health Maintenance Organization Act of 1973. This essentially allows a federally-qualified HMO to exchange premiums paid by its members for medical services from a network of doctors and healthcare facilities including hospitals.

HMOs act as a coordinated delivery system designed to pay for and deliver healthcare to its members. Each member is usually assigned a gatekeeper or primary care physician (PCP) who sees to the overall care of that member. Specialists and non-emergency hospital admissions usually require a referral from a PCP.