Question

A . (HMO) improves the benefits of its health plan to attract more patients.

Answer 1

Answer:

Health maintenance organizations (HMOs) provide health insurance coverage for a monthly or annual fee. An HMO limits member coverage to medical care provided through a network of doctors and other health care providers who are under contract with the HMO.1 These contracts allow for premiums to be lower than for traditional health insurance—since the health providers have the advantage of having patients directed to them. They also add additional restrictions to the HMO's members.2

When deciding whether to choose an HMO insurance plan, you should take into consideration the cost of premiums, out-of-pocket costs, any requirements you may have for specialized medical care, and whether it's important to you to have your own primary care provider.

KEY TAKEAWAYS

A health maintenance organization (HMO) is a network or organization that provides health insurance coverage for a monthly or annual fee.

An HMO is made up of a group of medical insurance providers that limit coverage to medical care provided through doctors and other providers who are under contract to the HMO.

These contracts allow for premiums to be lower—since the healthcare providers have the advantage of having patients directed to —but they also add additional restrictions to HMO members.

HMO plans require that participants first receive medical care services from an assigned provider known as the primary care physician (PCP).

Preferred provider organizations (PPOs) and point-of-service plans (POS) are two types of healthcare plans that are alternatives to HMOs.