What is an 'HMO'?

What is an 'HMO'?

A HMO is a health maintenance organization. The concept started in 1974 with some legislature that the Nixon administration allowed to come into play to basically allow the doctors to be prepaid and to force doctors to take some risk on your care. So that it turned, in many ways the healthcare provider into a risk share. So that if you need a lot of care that money is going to come out of the same budget for the doctor versus going back and being part of the insurance companies responsibility. So, in many situations the doctors became little insurance companies trying to limit the care of their own patients if they're ever going to have a chance at making a reasonable living.