Asked by Lindsey Norberg on Apr 26, 2024
Verified
Health maintenance organizations (HMOs)
A) are based on the traditional fee-for-service system of paying physicians.
B) charge a fixed amount per member, hire many of their own physicians, and provide health services only to members.
C) are also known as preferred provider organizations.
D) are illegal in several states.
Health Maintenance Organizations
Organizations that provide or arrange managed care for health insurance, self-funded health care benefit plans, or individuals.
Fee-For-Service System
A payment model where services are unbundled and paid for separately, often used in the healthcare sector.
- Understand the mechanisms through which managed-care organizations like HMOs and PPOs aim to reduce health care costs.
Verified Answer
HJ
Holly JacobsApr 30, 2024
Final Answer :
B
Explanation :
HMOs operate by charging a fixed amount per member, often employing their own physicians, and typically restrict services to members only, differentiating them from traditional fee-for-service models and preferred provider organizations (PPOs). They are legal and operate in various states.
Learning Objectives
- Understand the mechanisms through which managed-care organizations like HMOs and PPOs aim to reduce health care costs.
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