Health Maintenance Organization (HMO)
Health Maintenance Organizations (HMO) provide basic and supplemental health services to members, charging flat-rate premiums. They often work with a network of health providers on a prepaid basis, pre-negotiating prices to offer lower cost services.
Consequently, health coverage with an HMO is often limited to physicians and healthcare providers within this network, but premiums may be lower and there are often no deductibles. On the downside, if you require treatment from an out-of-network provider, you may be liable to pay the entire cost.
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