A health maintenance organization is a network or organization that provides health insurance coverage for a monthly or annual fee.
An HMO is made up of a group of medical insurance providers that limit coverage to medical care provided through doctors and other providers who are under contract with the HMO .
These contracts allow for premiums to be lower sine the health care providers have the advantage of having patients directed to them but they also add additional restrictions to HMO members.
HMO plane require that participants first receive medical care service from an assigned provider known as the PCP.
