What is a key feature of health maintenance organizations (HMOs)?

A key feature of health maintenance organizations (HMOs) is their structure that emphasizes the use of network providers, which typically results in lower premiums for members. HMOs operate on a managed care model, meaning members must primarily use a set network of doctors, hospitals, and other healthcare providers to receive the full benefits of their plan. This containment of costs allows HMOs to offer lower premiums compared to other types of health insurance plans.

While members can sometimes access out-of-network services, doing so often incurs significantly higher costs, making it less desirable. Additionally, HMOs generally do require referrals from a primary care physician to see specialists, which is unlike the flexibility found in some other plans. Therefore, the emphasis on using a network for healthcare services while keeping premiums lower is what distinctly characterizes HMOs.