What is one characteristic of Health Maintenance Organizations (HMOs)?

Health Maintenance Organizations (HMOs) are a type of managed care organization that emphasizes preventive health care and cost efficiency. One key characteristic of HMOs is that they commonly limit choice of providers for patients. Members of an HMO are typically required to choose a primary care physician (PCP) from within the HMO's network. This PCP coordinates the member’s healthcare and refers them to specialists within the network as needed. By restricting access to a specific network of providers, HMOs can manage costs and maintain a focus on preventive care, as well as reduce unnecessary services.

In contrast, the other choices reflect characteristics that are not typical of HMOs. For instance, many HMOs do require prior authorization for certain services, particularly specialist visits, which helps to manage costs and ensure that care aligns with the organization’s protocols. Additionally, while some health care plans may allow more flexibility in provider choice, HMOs specifically promote the use of a designated network, and therefore they often have referral requirements for specialist care.