What is a health maintenance organization (HMO)?

A health maintenance organization (HMO) is a type of managed care health insurance plan designed to provide comprehensive healthcare services to its members. This model emphasizes preventive care and utilizes a network of providers who are contracted with the HMO. Members usually select a primary care physician who coordinates their healthcare, and referrals to specialists are typically required to manage treatment.

The HMO structure aims to reduce healthcare costs while ensuring that members receive appropriate care. This may involve set copayments for visits and services rather than paying a deductible, which aligns with the organization’s goal of encouraging preventive measures and routine healthcare.

The other options describe concepts that are not applicable to the HMO framework. For example, a flexible insurance plan with a high deductible applies more to health savings accounts or high-deductible health plans, while life insurance policies do not align with the managed care principles of HMOs. Emergency healthcare services may be a component of health insurance plans, but they do not define the entirety of what an HMO provides. Thus, the focus on managed care is what distinctly classifies an HMO.