Health Maintenance Organization (hmo)

Definition of "Health maintenance organization (hmo)"

Dennis Guldseth real estate agent

Written by

Dennis Guldsethelite badge icon

Berkshire Hathaway HomeServices Lovejoy Realty

Prepaid group health insurance plan that entitles members to services of participating physicians, hospitals, and clinics. Emphasis is on preventive medicine. Members of the HMO pay a flat periodic fee (usually deducted from each paycheck) for these medical services:

  1. HMO Managing Physician & new member can select an HMO physician, who is then responsible for providing all of his or her health care needs. If necessary, the managing physician makes arrangements for the member to see a specialist.
  2. HMO Copayment a. member may be required to pay an amount in addition to required periodic payments, for example, a $5 flat fee for each visit regardless of how expensive the services may be. Or, for each prescription, to pay a flat amount of $2 regardless of the actual cost.
  3. HMO Hospital Services include, among others, room and board, operating room, laboratory tests, radiation, medications, and physical therapy.
  4. HMO Physicians and Surgeons Services in Hospital include surgeons and related medical specialists, with no co-payment.
  5. HMO Outpatient Hospital Care members receive the same services that are provided under Inpatient Hospital Services, as authorized by the managing physician; there is no co-payment.
  6. HMO Outpatient Health Services Provided at HMO Facility-include physician services, preventive health services, diagnosis and treatment services, skilled nursing facility services, mental health and/or alcohol and drug abuse services, dental care under specific circumstances, and emergency services in and out of the HMO area. A co-payment may be required. HMO exclusions include custodial care, experimental procedures, conveniences not medically related such as television, radio, and telephones, and cosmetic care except for medically necessary reconstruction.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Excess coverage for employers who use self insurance for routine workers compensation risks. Many employers consider workers compensation exposure to be routine and predictable and set up a ...

Same as term Expected Loss: probability of loss upon which a basic premium rate is calculated. ...

System whereby the re insurer shares losses in the same proportion as it shares premium and policy amounts. Proportional reinsurance may be divided into the two basic forms: automatic ...

interconnection of computers that contain pages classified into groups called web sites that can be accessed over the internet. The only requirement for visiting a web site is to have ...

Calculation of the premium based on such factors as the applicant's age, sex, health record, family history, and type of insurance plan applied for. ...

Program enacted in 1965 under Title XVIII of the Social Security Amendments of 1965 to provide medical benefits to those 65 and over. The program has two parts: Part A, Hospital Insurance, ...

Form that reports the status and activity of retirement plans to the Internal Revenue Service (IRS). The IRS uses this form to determine whether a retirement plan is in compliance with all ...

Amount of loss that insured pays in a claim; includes the following types: Absolute dollar amount. Amount the insured must pay before the company will pay, up to the limits of the policy. ...

Failure to act with the legally required degree of care for others, resulting in harm to them. ...

Popular Insurance Questions