What is a HMO Plan? Health Insurance Explained

The sibling to PPO insurance plans, a HMO is a type of insurance plan that impacts which providers you see, how much you pay for services, and what type of care is available to you. Read on to learn more about HMO insurance plans and what they mean for your therapy costs.

What is a HMO?

HMO stands for “Health Maintenance Organization.” HMO insurance plans create networks of providers who receive a specified amount of reimbursement per service.

HMOs allow their members to receive services from any provider within the group. This is an insurance plan that centers your care around a primary care provider (PCP), which means that you will need a referral to see a specialist or therapist. HMO insurance plans place a heavy emphasis on prevention and wellness to increase their members’ health and decrease risk of needing emergency services.

How do I know if I have a HMO?

First, check out the name of your insurance plan - this will likely show up on your insurance card. Sometimes, the names of HMO plans have the letters “HMO” in the name. If you don’t see it there, locate your Summary and Benefits, the standardized masterlist of service coverage.

Your Summary and Benefits should have information about the plan near the top, detailing whether your plan is a HMO or another type of insurance. If you still cannot find the answer, give the customer service number on the back of your insurance card a call and ask what type of plan you have.

What are the benefits of a HMO plan?

There are many benefits to having a HMO plan. Here are a few reasons why a HMO plan might be a good fit for you:

What are the downsides of a HMO plan?

As with any insurance plan, there are downsides that need your consideration. Here are a few to keep in mind:

Should I choose a HMO plan for my health insurance?

HMO plans have plenty of pros and cons - so it’s really up to you and what you’re looking for! A few considerations:

Thinking through the pros and cons of this type of insurance is most effective when you have a Summary and Benefits and a provider directory to reference for each of your service types. For example, if you plan to see a therapist, you would want to see how much each session costs to you and whether or not the therapist for you is within the HMO network.

Zencare makes it easy to find a therapist in your network so you can make sure you’re seeing a high-quality provider at the lowest cost possible. Leave it to us to filter out the right insurance networks, your job is to connect with a great, vetted therapist in your area!