Disadvantages of HMO Medicare Advantage Plans (Limited Network & Doctor Choice)

If you’re turning 65 or already enrolled in Medicare, you may be considering a Medicare Advantage HMO plan. These plans often advertise low monthly premiums, extra benefits like dental and vision, and affordable copays.

But before choosing an HMO plan, it’s important to understand the disadvantages — especially when it comes to limited provider networks and restricted doctor choice.

In this article, we’ll break down the most common drawbacks of HMO Medicare Advantage plans, so you can make the best decision for your healthcare needs.

What Is an HMO Medicare Advantage Plan?

An HMO (Health Maintenance Organization) Medicare Advantage plan is a type of Medicare Part C plan offered through private insurance companies approved by Medicare.

Instead of Original Medicare paying providers directly, your Medicare benefits are managed through the HMO plan’s network of doctors, hospitals, and specialists.

While these plans can work well for some people, they also come with important limitations that many beneficiaries don’t realize until after enrollment.

1. Limited Doctor and Hospital Network

One of the biggest disadvantages of HMO Medicare Advantage plans is the restricted provider network.

With most HMO plans, you are required to use:

• doctors within the HMO network
• hospitals within the HMO network
• specialists approved through the network

If you go outside of the network, you may have to pay the full cost of care — except in emergencies.

Why this matters:

If your preferred doctor or hospital is not in the network, you may have to switch providers.

This can be especially frustrating if you’ve had the same doctor for years or have ongoing health conditions that require continuity of care.

2. You May Need Referrals to See Specialists

Unlike PPO Medicare Advantage plans, HMO plans often require a referral from your primary care physician (PCP) before you can see a specialist.

This means:

• extra steps to get appointments
• longer wait times
• delays in treatment
• fewer specialist options

For people who need frequent specialist visits, this can become a major inconvenience.

3. Out-of-Network Coverage Is Usually Not Covered

Most HMO Medicare Advantage plans provide little to no coverage outside of the network, except for emergencies or urgent care situations.

That means if you travel frequently or spend time in multiple states, an HMO plan may not be the best fit.

Example:

If you’re visiting family out of state and need non-emergency medical care, you may have to pay 100% out of pocket.

This is one reason many retirees choose a PPO plan or Medicare Supplement instead.

4. Plans Can Change Every Year

Many people don’t realize Medicare Advantage plans can change annually.

Each year, your plan may change:

• doctor and hospital network
• prescription drug coverage (formulary)
• copays and coinsurance
• deductibles and out-of-pocket maximum
• extra benefits like dental, vision, hearing

Just because your HMO plan works well this year doesn’t mean it will work the same next year.

That’s why it’s important to review your plan during the Annual Enrollment Period (AEP).

5. Higher Out-of-Pocket Costs for Major Medical Events

Medicare Advantage HMO plans often have low premiums, but they can carry higher out-of-pocket costs when you actually use the plan.

Most plans include:

• copays for doctor visits
• copays for specialists
• copays for ER visits
• daily copays for hospital stays
• outpatient surgery costs
• expensive imaging copays (MRI, CT scans)

In addition, these plans have an annual maximum out-of-pocket (MOOP) amount, which can be several thousand dollars per year.

For someone with chronic conditions or unexpected hospital stays, the costs can add up quickly.

6. Prior Authorization Can Delay Care

Many HMO Medicare Advantage plans require prior authorization for certain services such as:

• MRIs and CT scans
• physical therapy
• surgeries
• home health services
• skilled nursing facilities

This can lead to delays in care and frustration, especially when you need timely treatment.

7. Switching Plans Can Be Complicated

If you enroll in an HMO plan and later realize it isn’t a good fit, switching can be difficult depending on:

• the time of year
• your health conditions
• whether you qualify for a Special Enrollment Period
• whether you want to move into a Medicare Supplement plan

Many Medicare Supplement plans require medical underwriting unless you are in a guaranteed issue period.

That’s why making the right decision the first time is so important.

When an HMO Medicare Plan Might Be a Good Fit

Even with disadvantages, HMO plans can work well if:

✅ You are healthy and rarely visit doctors
✅ Your doctors and hospital are in-network
✅ You stay mostly in one area
✅ You want lower monthly premiums
✅ You are comfortable using referrals for specialists

For some people, an HMO plan is affordable and convenient.

The key is making sure it matches your lifestyle and healthcare needs.

HMO vs PPO Medicare Advantage: What’s the Difference?

Here’s a quick comparison:

HMO Medicare Advantage

• Lower monthly premiums
• Must stay in network
• Usually requires referrals
• Less flexibility

PPO Medicare Advantage

• More flexibility
• Can see out-of-network providers (usually higher cost)
• Often no referral required
• Higher premiums in some cases

Choosing the right type depends on your doctors, travel habits, and health conditions.

Need Help Choosing the Right Medicare Plan?

Choosing a Medicare plan is one of the most important financial and healthcare decisions you’ll make.

Many people are surprised to learn that the wrong plan can lead to:

• losing access to doctors
• higher-than-expected medical costs
• delays in specialist care
• unexpected prescription costs

If you’re turning 65 or already enrolled in Medicare and want help comparing your options, I can help.

Schedule a Free Medicare Consultation

I help individuals and families compare:

• Medicare Advantage (HMO & PPO)
• Medicare Supplement (Medigap)
• Prescription Drug Plans (Part D)

📍 Serving Southern California
🌐 Visit: https://www.charisekarjala.net
🌐 Or: https://www.healthmarkets.com/CKarjala

Call (760) 831-2736

email: ckarjala@healthmarkets.com

Final Thoughts: Know the Downsides Before You Enroll

HMO Medicare Advantage plans can be affordable, but the biggest disadvantages are usually:

• limited provider networks
• restricted doctor choice
• referral requirements
• little out-of-network coverage
• annual plan changes

Before enrolling, it’s always smart to compare your options and understand what you’re signing up for.

If you’d like help reviewing your Medicare choices, feel free to reach out anytime.



Charise Karjala, MBA

CA Lic 0i25521

Ph. (760) 831-2736

Serving Southern California, Palm Desert, Palm Springs, Cathedral City, Coachella Valley, Indio, Banning, Beaumont, Yucca Valley, Joshua Tree, Desert Hot Springs, Indian Wells, Rancho Mirage, Thousand Palms, La Quinta

Medicare 101 Roundtable

https://calendly.com/ckarjala/consultation

Learn more from youtube: https://www.youtube.com/channel/UC99gcPqoJXYQ6jFpj-wYgjw

https://youtube.com/shorts/AMhGrjB7KDM