What is a key feature of a Health Maintenance Organization (HMO)?

A key feature of a Health Maintenance Organization (HMO) is its focus on preventive medicine and prepaid health plans. HMOs are structured to encourage members to seek regular check-ups and preventive care to maintain their health and prevent illness. This is achieved through a network of healthcare providers who agree to provide services at reduced rates for members.

The prepaid nature of health plans means that members pay a predictable monthly fee that covers a range of services, making healthcare more accessible and encouraging the use of preventive services. This model supports the idea that maintaining health through preventive measures can reduce the need for more extensive treatment later on, thus lowering overall healthcare costs.

In contrast, options that suggest an emphasis on after-the-fact treatments or fee-for-service plans do not align with how HMOs function. Additionally, HMOs typically do not allow subscribers the flexibility to choose any provider, as care is usually restricted to the network of providers associated with the organization, further distinguishing them from other types of health insurance arrangements.