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Understanding Medical Plan Types:
What is an HMO?
A HMO is a medical plan that typically has a lower monthly cost than other types of plans, but does not give you as much freedom when choosing a doctor.
A Health Maintenance Organization typically costs less out of your paycheck than other types of plans, but doesn’t give you as many choices of doctors or specialists. With an HMO, you must designate a primary care physician who manages all of your care, and this doctor must give you a referral in order to go to any other specialist. You make a pre-defined payment, called a copay, with each doctor or specialist visit. These plans have lower monthly premiums, but limit your flexibility in choosing a provider.