Arkansas Life and Health Insurance Practice Exam

HMO health insurance stands for Health Maintenance Organization, which typically operates with a network of healthcare providers such as doctors, specialists, and hospitals. The correct answer is A because one of the key features of HMO plans is that they usually require you to choose a primary care physician (PCP) from within the network. This PCP coordinates your care and provides referrals to see specialists within the network when needed. This centralized approach helps in managing healthcare costs and ensuring that individuals receive comprehensive and coordinated care.

Option C is incorrect because, as mentioned earlier, HMO plans do require a primary care physician's referral to see a specialist. Option B is incorrect as HMO plans are generally less flexible than PPO (Preferred Provider Organization) plans because they typically require you to stay within the network for coverage. Option D is also incorrect as HMO plans usually require you to use approved providers within their network for full coverage.