The HMOs offered through the Annuity Board are a healthy way to cut high medical expenses. In an HMO, the insurance carrier contracts with physicians, hospitals and other healthcare providers to provide care for HMO clients. Generally, individuals who join the HMO must use the approved, or contracted, providers. Members of the HMO then receive treatment and make a small copayment but have no claim forms to file and no deductible to meet.
Employees make a modest copayment for certain services.
Contrast this with traditional indemnity medical plans. There, you choose your doctor or hospital, receive treatment, then turn in claim forms for reimbursement. If an employee requires hospitalization, the physician will arrange for admission and coordinate the employee's care. A service representative will help them with a physician referral. Should your employees require medical care for an emergency, they should seek medical care at the nearest health care facility.