What is HMO Health Maintenance Organization?

HMOs can be more affordable than other types of health insurance, but they limit your choices of where to go and who to see. The type of options you're likely to have will depend on where you live and how you get your health insurance. For example, if you are selecting health insurance through your employer, there may only be one or two options, or there may be multiple. If you are purchasing insurance on your own, the options vary by state.

 An HMO plan requires that you stick to its network of healthcare professionals, HMOs are considered one of the more affordable health insurance choices, yet costs vary based on the plan, region, and whether you enroll through your employer or as an individual. HMOs only cover in-network services. Care is typically managed by a primary care provider hospital, and labs for tests; otherwise, the services aren't covered. Exceptions are made for emergencies.

An HMO is a type of managed care health insurance, which means that the health insurance company has agreements with providers for the cost of care. (Managed care includes virtually all private coverage in the U.S.)