A health maintenance organization (HMO) is an organization that provides or arranges managed care for health insurance, self-funded health care benefit plans, individuals and other entities in the United States as a liason with health care providers (hospitals, doctors, etc.) on a prepaid basis.  According to the 2011 UBA Health Plan Survey of over 16,000 employer health plans nationwide, HMO plans are the lowest cost of all plans and often offer better than average plan designs.  CDHP’s have the 2nd lowest average annual cost per employees.