Most medical costs are covered as long as service is delivered by an approved provider at an approved facility. This type of plan is the most restrictive in terms of choice of health care provider in that most health care needs need to be met at facilities operated by the plan. There is minimal additional cost to the patient. Some times emergency care elsewhere is reimbursed, how ever, most medical services must be provided at the facility, by its providers in order to be covered. Kaiser and Cigna are examples of HMO's.
Costs vary from plan to plan.
This type of plan is currently evolving. Its provisions are usually a combination of those of PPO's and HMO's, and indemnity plans. It allows some choice, but manages health care costs through specific requirements and procedures for using it.