What is the main function of a Health Maintenance Organization (HMO)?

The primary function of a Health Maintenance Organization (HMO) is to provide managed care, emphasizing preventive services. This model is designed to improve health outcomes and reduce overall healthcare costs by focusing on preventing illnesses before they require more intensive treatment. HMOs typically achieve this by coordinating care through a network of providers and emphasizing regular check-ups, screenings, and early intervention, which are essential components of preventive healthcare.

In the HMO structure, members often need to select a primary care physician who oversees their healthcare and provides referrals to specialists within the network. This coordinated approach not only fosters better health management but also incentivizes providers to focus on preventive care, aligning the interests of the organization, the providers, and the patients.

Other options do not accurately reflect the core purpose of an HMO. The fee-for-service model is more characteristic of traditional insurance plans where services are billed separately, which diverges from the integrated care concept of an HMO. Unlimited access to out-of-network providers contradicts the HMO's network-based approach, where care is mostly provided within a limited network to manage costs effectively. Serving individuals over 65 does not define an HMO, as these organizations cater to a broader demographic, not exclusively to older adults.