How Does Medicare Reimburse HMO? 
They reimburse by the Medicare fee schedules and any negotiated arrangements they may have entered into with the HMO . There are experiments going on around the nation where different payment methodologies are being tested out to try and find that perfect balance of quality care and affordability . So , it 's never really been possible to give one answer to your question and in today 's environment that is doubly true . As a general rule , HMO 's were designed originally around a per member per month payment model though this approach has also gone through many variations over the years . In a very real sense you can say that Medicare Advantage plans are HMO 's or have more HMO like features than conventional Medicare does . 