One of the most common types of insurance plans is a Health Maintenance Organization, or HMO. There exist both advantages and disadvantages to HMOs, and therefore it is important to be familiar with this type of plan to see if it is right for you.
Under an HMO, a medical organization engages in a contract with an insurance provider, allowing the doctor or hospital to offer services to patients at a reduced rate. If you are insured under an HMO, you usually must choose a primary care provider and visit that provider for all of your non-emergency health care needs in order to receive coverage. If you need to see a specialist, you usually must first get a referral from your primary care provider for your visit. This can sometimes lead to problems if a patient cannot get the care he or she needs in a timely manner.
Despite the restrictions on who you may visit for your health care needs, HMOs are generally a low-cost health insurance option, and thus are popular among many people. Under an HMO, a person usually pays only a limited co-pay or may even be able to visit the doctor for free. This makes these types of health care plans a smart choice for those who cannot afford to pay additional out-of-pocket costs.
To learn more about your health insurance options in the state of California, visit Health Insurance of California.
