Which health insurance plan typically has lower premiums?

The option indicating that the Health Maintenance Organization (HMO) typically has lower premiums is correct because HMO plans are structured to provide coverage at lower costs to members. This is largely due to their model of care, which emphasizes preventive services and the use of network providers. Members are usually required to select a primary care physician and need referrals to see specialists, which helps control costs by managing healthcare services more tightly.

Additionally, HMOs often negotiate lower rates with their network providers, leading to reduced overall spending for both the insurer and the insured. These features reduce the risk of high utilization of services and thus contribute to lower premiums compared to plans like Preferred Provider Organizations (PPOs), which offer more flexibility in choosing healthcare providers but generally come with higher costs.