What does HMO stand for in health insurance?

HMO stands for Health Maintenance Organization. This type of health insurance plan is designed to provide a broad range of health services while emphasizing preventive care and cost control. HMOs typically require members to choose a primary care physician (PCP) who oversees their healthcare needs and refers them to specialists within the network. This structure allows for coordinated care and can lead to lower healthcare costs for both the insured individuals and the insurer.

The other options do not accurately reflect the meaning of HMO. "Health Management Option" and "Health Membership Organization" do not correspond to any established meaning in the context of health insurance plans. Similarly, "Healthy Medical Organization" is not a recognized term within the health insurance industry. Understanding the correct terminology is essential for navigating health insurance options and comprehending how different insurance plans function.