Health Maintenance Organization - HMO

Filed Under » , , , ,
Dictionary Says

Definition of 'Health Maintenance Organization - HMO'

An organization that provides health coverage with providers under contract. A Health Maintenance Organization (HMO) differs from traditional health insurance by the contracts it has with its providers. These contracts allow for premiums to be lower, because the health providers has the advantage of having patients directed to them; but these contracts also add additional restrictions to the HMO's members.
Investopedia Says

Investopedia explains 'Health Maintenance Organization - HMO'

HMO's are believed to have been started in the early 1900s when companies began to offer employees plans of prepaid medical service, and have done very well since. The HMO Act of 1973 helped to cement the HMO into the U.S. health system by providing grants to start or expand HMOs, removing many restrictions imposed by the individual states, and required employers with more than 25 employees to offer a federally-certified HMO to employees.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Articles Of Interest

  1. How To Choose A Healthcare Plan

    HMOs? PPOs? CDHPs? We'll clear up the confusion so you can find the right coverage.

  2. 20 Ways To Save On Medical Bills

    Handy tips to cut the cost of hospital bills, co-pays, prescription drugs and more.

  3. Find Secure And Affordable Post-Work Health Insurance

    Learn how you can avoid financial catastrophe - without Medicare.

  4. Fighting The High Costs Of Healthcare

    If your employer is cutting medical benefits, a health savings account may be right for you.

  5. How To Avoid Medical Debt

    Find out what you can do to avoid a financial meltdown when there's a medical emergency.

  6. What Does Medicare Cover?

    Don't assume you're insured. Find out what you can expect from this healthcare program.

  7. Should You Bite On Dental Insurance?

    Don't pay for a plan that won't cover your pearly whites when you need it to.

  8. Failing Health Could Drain Your Retirement Savings

    You may not be able to prevent illness, but it doesn't have to infect your savings.

  9. The Top 3 Retiree Worries (And What To Do About Them)

    Discover the most common problems retirees face, and what they can do to solve them.

  10. What's The Difference Between Medicare And Medicaid?

    One program is for the poor; the other is for the elderly. Learn which is which.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center