Final answer:
An A. HMO is a voluntary health plan that provides healthcare services to its members in return for a monthly premium.
Step-by-step explanation:
An HMO (Health Maintenance Organization) is a voluntary health plan that provides healthcare services to its members in return for a monthly premium for their membership. In an HMO, members are required to choose a primary care physician (PCP) who manages all their healthcare needs. The PCP must refer the member to a specialist for any specialized care.
Unlike other types of health plans, such as PPOs and POS plans, HMOs typically do not cover out-of-network care and have more restrictions on accessing healthcare services. However, HMOs generally have lower monthly premiums compared to other plans.
For example, let's say you have an HMO health plan and you start experiencing chest pain. You would need to contact your PCP first, who may then refer you to a cardiologist for further evaluation and treatment. The HMO health plan would cover the costs associated with the PCP and cardiologist visits, provided they are within the network.