by Answerbag Staff on December 16th, 2009

Answerbag Staff

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What is HMO health insurance?

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  • by Contributing Writer on December 16th, 2009

    Answerbag Experts

    Great Answer

    Professionally Researched. (What's this?)

    A Health Management Organization (HMO) is a form of health care provided in the United States among certain doctors and hospitals. HMO health insurance helps cover expenses only for doctors in the program.

    History

    The emergence of HMOs began with the U.S. Department of Health and Human Services in the early 1970s. Federal Laws were enacted to establish and fund HMOs.

    Requirements

    Companies with 25 employees or more are required to offer HMO options. This was mandated under the Health Maintenance Organization Act of 1973.

    Types

    With a staff HMO, a doctor is salaried and works as a direct employee for the HMO. In a group HMO, a group of doctors in private practice are contracted by the HMO, but not directly employed by the organization.

    Effects

    HMO health plans are designed to contain medical expenses for a patient covered under the program. The goal of the program is to reduce out-of-pocket expenses.

    Examples

    Blue Cross and Kaiser Permanente are both well-known HMOs that contract with physicians to provide medical care for patients.

    Source:

    What is an HMO?

    Requirements of health maintenance organizations

    Resource:

    Blue Cross

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  • by Moongrim on December 31st, 2009

    Moongrim

    An attempt in the '70s to "Manage Health Care Costs". All they ended up doing was creating another level of bureaucracy that needed to be financed by health care dollars. Because- they too were out to make a profit margin.

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