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Health Maintenance Organization (HMO)

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An HMO provides prepaid medical services. For a set monthly fee, HMOs offer members a range of health benefits including preventive care. Patients or employers pay the set fee that covers all medical expenses from routine medical care to hospitalization. Patients enrolling in an HMO must select a participating primary care provider to monitor their health care needs. If the condition requires more specialized care, a provider must refer the patient to another specialist.

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