What is a common feature of HMO plans?

A common feature of Health Maintenance Organization (HMO) plans is the limited network of providers. HMO plans operate on the premise of providing comprehensive healthcare services through a network of designated providers and hospitals. Members are generally required to select a primary care physician (PCP) from within this network and seek referrals from their PCP to see specialists or obtain further care.

This structure helps HMOs manage costs effectively while promoting preventative care, as they encourage patients to utilize in-network services to maintain lower out-of-pocket expenses. Consequently, having a limited network can be seen as both a strength for cost control and a limitation for consumer choice, as only certain providers and facilities are available to members.

Other options do not accurately capture the typical characteristics of HMO plans. For example, while HMO plans usually do require referrals from a primary care physician, this is contrary to the first option's assertion. Higher premiums are generally associated with more flexible plans like indemnity plans, which allow patients greater choice by letting them see any provider without network restrictions. Lastly, while many HMO plans do not provide out-of-network coverage except in emergencies, this characteristic is not universally applicable to all HMO plans, as it varies by specific policy terms.