What is a HMO in Health Insurance?

what is an HMO in health insurance

What is an HMO?


A health maintenance organization, often abbreviated to HMO, helps a business keep its costs related to healthcare low and predictable. An HMO health plan is easy for your employees to use and can often provide the best kind of care as it utilizes a single doctor to direct all of your employees’ healthcare treatments.


It’s important to remember that an HMO plan restricts members to an established network of healthcare providers. This network will include care and services from doctors, hospitals, clinics, pharmacies, and labs. If a patient seeks care from outside of this network, the HMO plan will not cover the costs.


What Does an HMO Plan Offer?


By choosing an HMO health plan, your employees benefit from:


  • Reduce cost of premiums, co-pays, and deductibles as with an HMO, these fees are often lower than other types of plans.
  • Access to an HMO provider network. This network of predetermined doctors and hospitals will help business leaders have greater control over how much is spent on healthcare.
  • A primary care physician who they’ll be able to see for all routine appointments. The PCP will help direct them to appropriate specialists if they present with serious conditions.


The Benefits of an HMO


HMO plans are designed with the customer in mind. They are designed to help your employees stay healthy. This is achieved by having one single point of contact for healthcare. Regular contact with a primary care physician can help your employees get an early diagnosis. An early diagnosis can result in common health issues being identified early enough to stop them from getting worse. The key benefit of an HMO is arguably the chance to improve member health forecasts and drive down the overall costs of your business’s healthcare plans.


How Benely Can Help


Here at Benely we have a network that consists of the biggest and best health insurance carriers in the United States. As such, partnering with us can help you get the best HMO available for your employees. To find out if an HMO is best for your business, contact one of our team today and we’ll talk things through with you.