Which of the following accurately reflects a characteristic of an HMO?

An HMO, or Health Maintenance Organization, is designed to manage healthcare services through a network of approved providers. This structure helps ensure that patients receive care that is coordinated and typically more cost-effective. The key characteristic of an HMO is that patients are encouraged to select their primary care provider from a network of designated physicians and specialists. This system helps control costs by only covering services provided by these network professionals, fostering a comprehensive approach to health management.

For individuals who are part of an HMO, care is coordinated through their primary care provider, who can refer patients to specialists within the network as needed. This can simplify the care process and improve health outcomes since healthcare providers within the network often communicate effectively and collaborate on patient care.

The other options reflect misconceptions about HMOs. Patients do not have the flexibility to choose out-of-network providers without facing higher out-of-pocket expenses; coverage for procedures typically adheres to certain restrictions; and HMO policyholders usually do not receive rebates for unused services, as the structure is focused on preventive care and managing healthcare costs.