What does HMO stand for?

• A. Health Maintenance Organization
• B. Health Management Organization
• C. Hospital Medical Organization
• D. Health Services Organization

Answer: (A)

Health Maintenance Organization is the correct expansion of HMO. It refers to a type of managed care plan that emphasizes preventive care and operates through a network of doctors and hospitals to keep costs down. With this model, you usually select a primary care physician who coordinates your care and you generally need referrals to see specialists, which helps control expenses by encouraging in-network services. The other phrases—Health Management Organization, Hospital Medical Organization, or Health Services Organization—are not the standard terms used to describe this acronym, so they don’t reflect how HMOs are typically organized or function.