Asked by Kayla Gonzalez on Apr 27, 2024
Verified
One major difference between PPOs (preferred providers organizations) and HMOs (health maintenance organizations) is that
A) PPOs set rates for various medical services or procedures, while HMOs allow their doctors and clinics to set their own rates.
B) PPOs seek to reduce health care costs by controlling prices, while HMOs seek to reduce costs by restricting quantity consumed.
C) HMOs employ their own physicians or contract for specialized services with outside providers, while PPOs have arrangements with a network of providers.
D) HMOs seek to reduce costs by capping the rates for various services, while PPOs seek to ration health care by having waiting periods.
PPOs
Stands for Preferred Provider Organizations, a type of health insurance plan that offers a network of healthcare providers from which policyholders can choose for their medical care, often at a discounted rate.
HMOs
Health Maintenance Organizations that provide health insurance coverage using a network of doctors, hospitals, and other healthcare providers.
Preferred Providers Organizations
A type of health insurance plan that offers a network of healthcare providers from which patients can choose at a lower cost.
- Differentiate between Preferred Provider Organizations (PPOs) and Health Maintenance Organizations (HMOs).
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
C
Explanation :
HMOs often employ their own physicians or contract for specialized services, focusing on a more integrated approach to healthcare delivery. PPOs, on the other hand, have agreements with a network of providers to offer services at reduced rates to their members, allowing for more flexibility in choosing providers.
Learning Objectives
- Differentiate between Preferred Provider Organizations (PPOs) and Health Maintenance Organizations (HMOs).