Which of the following best defines health maintenance organizations (HMOs)?

Health maintenance organizations (HMOs) are defined as insurance plans that require members to use doctors within their network. This structure emphasizes coordinated care and preventive services, as members are encouraged to select a primary care physician who manages their care and refers them to specialists when necessary. This system promotes continuity of care and helps control healthcare costs by incentivizing the use of in-network providers.

The nature of HMOs is such that they are designed to limit patients’ choices to those healthcare providers who have contracted with the HMO, which helps ensure that the services provided align with the organization's health management strategies. This built-in network of providers helps streamline care and reduces unnecessary services, ultimately aiming to improve health outcomes while managing expenses.

While HMOs do provide managed care, they are fundamentally insurance plans aimed at specific network providers, which distinguishes them from other types of health insurance models or government programs.