Illinois Health Insurance Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What does HMO stand for?

Health Maintenance Organization

The correct answer is "Health Maintenance Organization." An HMO is a type of health insurance plan that requires members to obtain healthcare services from a network of predetermined providers. This insurance model emphasizes preventive care and coordination of services, aiming to manage overall health and reduce costs.

In an HMO, members typically select a primary care physician (PCP) who acts as a gatekeeper for their healthcare services. The PCP is responsible for coordinating the member's care and referring them to specialists when necessary. This structure encourages members to utilize in-network providers and emphasizes preventive services, which can contribute to better health outcomes and more efficient use of healthcare resources.

Understanding the definition and structure of an HMO is fundamental in the context of health insurance, as it influences how individuals access care and what kind of coverage they can expect.

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Health Management Option

Health Maintenance Order

Health Monitoring Organization

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