What does the abbreviation ‘HMO’ stand for in health insurance?

The abbreviation 'HMO' stands for Health Maintenance Organization. This type of managed care organization provides health insurance coverage through a network of doctors, hospitals, and other healthcare providers. Members are typically required to choose a primary care physician who coordinates their care and refers them to specialists within the network. The HMO model emphasizes preventive care and typically requires lower premiums and out-of-pocket costs for consumers, making it an attractive option.

The focus of an HMO is to manage health care costs while encouraging members to use a defined network of healthcare providers, which ensures that patients receive a consistent level of care and promotes a holistic approach to health management. Understanding this concept is essential for students learning about health insurance, as it highlights the differences in how various insurance plans operate and how they impact patient care.