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How Does HMO Insurance Work?

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From Quick Guide: Introduction to HMO

Summary: An HMO, or health maintenance organization, is an organization of different doctors and hospitals that is pre-paid in order to treat patients within that group. Discover how an HMO champions stress prevention with tips from an insurance broker in this free video on health care and financial planning.

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By Vic Schumacher
eHow Presenter

Vic Schumacher is part of HPE Financial Services, a brokerage insurance company representing all major carriers. He works with businesses, families and individuals, helping them to...read more

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Video Transcript

"Hello. My name is Vic Schumacher. The company is HPE Financial Services. The topic today is HMOs. What is an HMO? An HMO stands for Health Maintenance Organization and it's just an organization of different doctors and hospitals themselves, that are prepaid by the organization to treat patients who come in, who represent, who are in that group. It's a prepaid type of approach. They will only, usually, only take care of people who belong to that group, who belong to the HMO. The HMOs and their philosophy in health maintenance is to stress prevention, so different companies stress prevention more than other companies. The HMOs are large; they have a network throughout the United States, and you really can't go wrong working with an HMO; it's just you have to stay within that particular network. You have to belong to that group in order to have your benefits paid for by the insurance company. HMOs have been around for a long time. The opposite of the HMO is the PPO, Preferred Provider Network, and these doctors and hospitals work with the group as well, but they also will treat patients outside of that particular organization. An HMO and PPO are what we have to work with in the country today. My name is Vic Schumacher. The company is HPE Financial Services, helping people everyday."

eHow Article: How Does HMO Insurance Work?

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