Basics of Medicare Advantage Plans
Medicare Advantage Plans are alternatives to Original Medicare. There are multiple Medicare Advantage Plans, one of the most common plans being Health Maintenance Organization (HMO) plans. Take a look below to learn more about HMOs.
Basics of an HMO
An HMO is a type of insurance plan that emphasizes low cost at the expense of flexibility. It is not specific to Medicare. Many different insurance models use the HMO model. An HMO works like this: insurance companies make agreements with preferred providers and designates them as in-network providers. These preferred providers will provide your care at a low, flat rate. Unlike a PPO, with an HMO, you cannot receive care outside of your network and still be covered. If you do receive care outside of your network, you will be responsible for the costs.