The Medicare Advantage Plan, which is considered a health maintenance organization, is one of the plans private organizations can offer to employees with health care benefits. The other plans include preferred provider organizations, private fee-for-service plans, special needs plans and medical savings account plans.
Under the Medicare HMO plan, an employee must only seek care from the doctors, health care providers or hospitals that the plan endorses except in emergency situations. If someone receives attention from a health care professional outside of the plan’s network, he is responsible for paying the full cost out of pocket. In addition to the cost of health care, some HMO plans cover the cost of prescription drugs.