What does HMO stand for in the context of health insurance?

In the context of health insurance, HMO stands for Health Maintenance Organization. HMOs are a type of managed care organization that provides health insurance coverage with a focus on preventative care. Members of an HMO typically select a primary care physician (PCP) and must go through this PCP for referrals to specialists and other services, making it a coordinated system aimed at reducing overall healthcare costs while promoting better health outcomes.

The structure established by HMOs encourages routine check-ups, preventive care, and early intervention, which can help manage chronic diseases and prevent more severe health issues from developing. As a result, HMOs can often offer lower premiums compared to other types of health insurance plans. The emphasis on a network of providers also means that services are more directed and managed, which can streamline healthcare delivery for patients.