What is a key characteristic of Health Maintenance Organizations (HMOs)?

A key characteristic of Health Maintenance Organizations (HMOs) is their focus on preventative care and the requirement for members to receive permission, or a referral, before seeking care from non-network providers. HMOs emphasize maintaining the overall health of their members, which is reflected in their services that often include regular check-ups, screenings, and wellness programs aimed at preventing disease rather than just treating illness.

Moreover, since HMOs negotiate rates with a defined network of healthcare providers, patients are typically required to select a primary care physician (PCP) who coordinates their care. If specialized or out-of-network care is needed, the member must obtain authorization from their PCP. This system is designed to manage costs more effectively and ensure that members receive consistent and coordinated care.

In contrast, the other options present characteristics that are not aligned with the fundamental structure of HMOs, such as offering unlimited choice for providers or paying for services outside of their network without prior authorization.