Health Maintenance Organization (HMO)

Health Maintenance Organization (HMO)

Historically, employers have allowed employees to seek out the type of medical care they desire. More recently they direct employees to either a Health Maintenance Organization (HMO) or a Preferred Provided Organization (PPO).

An HMO is comprised of hospitals and doctors who provide specified medical services to employees for a fixed monthly fee. Employees under this plan must use those doctors and hospitals, except in cases of an emergency or permission do to go outside the HMO.

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