HMO plans are a kind of managed care health insurance plan. HMO’s, also known as health maintenance organizations, are companies that have contracts with doctors and other health care providers and they are directly involved in the medical treatment of their customers. While HMO health insurance plans are generally the cheapest kind of coverage available, they are also the most restrictive for your employees from a perspective of provider choice. These usually have a deductible but no coinsurance requirement.
Under this plan:
- You are required to choose one primary care physician who directs your care.
- You are limited to using in-network doctors and hospitals except in an emergency or by referral from your primary care physician.
- You need to make a co-payment (a flat fee you pay for each doctor visit).