Key feature of HMO?

• A. High cost with wide network.
• B. Low cost but limited flexibility.
• C. No copays at all.
• D. Requires PCP referral for all visits.

Answer: (B)

HMOs lower overall costs by restricting networks and using a primary care physician as a gatekeeper. This setup typically means lower premiums and out-of-pocket costs, but less flexibility because you must stay within the network and coordinate care through your PCP. The combination of cost savings with network and gatekeeping makes the description best described as low cost with limited flexibility. Keep in mind that you usually need a referral to see a specialist, while visiting the primary care physician is typically straightforward within the network.