Which type of insurance plan involves agreements with healthcare providers to offer services at a specific rate?

The Health Maintenance Organization (HMO) type of insurance plan is characterized by agreements with healthcare providers to deliver services at predetermined rates. This arrangement encourages a managed care approach, wherein HMO members typically select a primary care physician who coordinates their medical needs. The physicians and specialists are part of the HMO network, allowing the organization to negotiate specific payment rates and control costs.

In an HMO, members benefit from lower out-of-pocket expenses when they utilize network providers. The structure aims to prevent overspending on healthcare services, promoting preventative care and wellness practices, ultimately leading to cost savings for both the insurance provider and the insured individuals. This model emphasizes comprehensive care through a network, ensuring that all necessary medical services are this organized, easily accessible, and consistent with the agreed-upon rates.

The other options do not incorporate such a network or predetermined rate agreements in the same manner. A fee-for-service plan typically allows members to choose any healthcare provider and pay for each service individually, lacking the same cost-containment strategies. Individual health plans can vary significantly in how services are billed and do not necessarily involve network agreements. Short-term insurance plans often act as temporary coverage and do not focus on structured agreements with healthcare providers for services.