What Does HMO Mean?

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What does HMO mean? Read on to discover the definition & meaning of the term HMO - to help you better understand the language used in insurance policies.

HMO

HMO

A health maintenance organization (HMO) is a health service organization that offers medical services to members from a network of providers under contract. Because the contract directs a steady amount of patients to the providers, this results in lower premiums; however, HMOs place certain restrictions on its members. Members can only receive services outside of the HMO network through a referral from a primary care physician (PCP), or if they pay out of pocket.

We hope the you have a better understanding of the meaning of HMO.

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