In the United States a
health maintenance organization (
HMO) is an organization that provides or arranges
managed care for
health insurance, self-funded health care benefit plans, individuals, and other entities in the
United States and acts as a liaison with
health care providers (hospitals, doctors, etc.) on a prepaid basis. The
Health Maintenance Organization Act of 1973 required employers with 25 or more employees to offer federally certified HMO options if the employer offers traditional healthcare options. Unlike traditional
indemnity insurance, an HMO covers care rendered by those doctors and other professionals who have agreed by contract to treat patients in accordance with the HMO's guidelines and restrictions in exchange for a steady stream of customers. HMOs cover emergency care regardless of the health care provider's contracted status.