How is care paid or financed when an HMO is used?

When an HMO (Health Maintenance Organization) is used, care is typically financed through a monthly premium paid by members, often coupled with co-payments for specific services. Members must choose a primary care physician (PCP) who coordinates their care and provides referrals to specialists within the network. This model emphasizes preventive care and cost control, as HMOs negotiate rates with providers and focus on maintaining the health of their enrolled population. Additionally, services outside the network are usually not covered, except in emergencies.