The Pros and Cons of Purchasing a HMO Health Insurance Plan

Health Maintenance Organization insurance plan or HMO health insurance plan is a type of managed care organization that provides health care system to support both financial and medical treatments of their members. It operates by setting out guidelines from which their network of affiliated doctors can base their treatments and other medical needs.

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HMOs have generally lower monthly fees compared to other insurance system that is usually deducted from a paycheck. It requires co-pay or the amount paid during treatment that is deductible from the total medical cost. This payment, however, may vary depending on each medical office's rate, prescriptions and the medical treatment used.
Basically there are two reasons by which HMO can provide less expensive health care. First, HMO deals with quantity of patients and with direct health insurance providers. With this, a great deal of negotiation is possible to provide patients with reasonably priced health care. Second, by removing treatments which are deemed unnecessary by HMO while focusing on preventive health care done through distribution of informative handbooks and health guides.