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Glossary of Common Health Insurance Terms

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Health Maintenance Organization (HMO)

Health Maintenance Organizations represent “pre-paid” insurance plans in which individuals or their employers pay a fixed monthly fee for services, instead of a separate charge for each visit or service. The monthly fees remain the same, regardless of provided service levels or types. Services are provided by physicians who are employed by, or under contract with, the HMO. Depending on the HMO type, services may be provided in a central facility or in a physician’s office.
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