How does an HMO plan work?

Though there are many variations, HMO (Health Maintenance Organizations) plans typically enable members to have lower out-of-pocket healthcare expenses but also offer less flexibility in the choice of physicians or hospital than other health insurance plans.  As a member of a HMO, you will be required to choose a primary care physician (PCP).  Your PCP will take care of most of your healthcare needs.  Before you can see a specialist, you will need to obtain a referral from your PCP.

With an HMO, you will likely have coverage for a broader range of preventive healthcare services than you would through another type of plan.  You may not be required to pay a deductible before coverage starts and your co-payments will likely be minimal.  With an HMO plan, keep in mind that you will  have no coverage for services rendered by a non-network provider or for services rendered without a proper referral from you PCP.