Health Maintenance Organization

Health Maintenance Organizations (HMOs) function much like an insurance company. They offer policies, collect premiums and bear financial risk. So how are HMOs different than regular insurance companies? Insurance companies are a third party to patients and providers. HMOs are also the provider. HMOs usually sub-contract out to provider organizations but also share financial risk with providers. HMOs require care to be delivered only by HMO providers, except in emergencies or under special benefit plans. HMOs, as the full name implies, emphasize preventive medicine.