What is a key characteristic of Health Maintenance Organization (HMO) Medicare Advantage plans?

A key characteristic of Health Maintenance Organization (HMO) Medicare Advantage plans is that members must receive covered services from contracted network providers. This structure is fundamental to the HMO model, which emphasizes care coordination and cost control. HMO plans typically require members to choose a primary care physician (PCP) who coordinates their healthcare and provides referrals to specialists within the network.

By mandating that services be obtained from a network of contracted providers, HMO plans can manage care more effectively, maintain lower premiums, and reduce overall healthcare costs. Members benefit from a more streamlined process where their care is organized and managed by a designated PCP, fostering continuity of care.

Other options describe characteristics that are typical of different types of health plans. For example, the first choice suggests a fee-for-service model where members can see any provider, while the option about switching freely suggests a more flexible plan design that isn't typically found in HMO structures. Lastly, while referrals for specialist visits are common in HMOs, they are not universally required for all plans; therefore, it does not encapsulate the main defining feature of HMO Medicare Advantage plans.