What does a Health Maintenance Organization (HMO) typically require from its members?

A Health Maintenance Organization (HMO) typically requires its members to use in-network providers for covered services. This model is designed to promote cost efficiency and coordinated care, as members must choose a primary care physician (PCP) within the network. The PCP acts as a gatekeeper, managing referrals to specialists and other services, which helps to ensure that care is provided in a streamlined and cost-effective manner.

Using in-network providers allows the HMO to negotiate lower rates and provide more affordable care options to its members. Since HMOs focus on preventive services and managing overall health, having a designated network encourages members to seek necessary care and maintain regular check-ups, aligning with the HMO's goal of improving health outcomes while controlling costs.

This requirement is a fundamental aspect of how HMOs operate, distinguishing them from other types of health insurance plans that may allow for more flexibility in provider choices.