Question

Some managed care plans use physicians, hospitals, and health care organizations that agree to make medical services available to insureds at discounted fees. Insureds are not required to use these entities, but if they do, health care costs are less than if these entities are not used. Such health care organizations are called:

A. Preferred Provider Organizations (PPOs)

B. Health Maintenance Organizations (HMOs)

C. Blue Cross/Blue Shield Plans

D. Health Savings Accounts ( HSAs)

Answer 1

The answer is B- Health Maintenance Organizations (HMOs)

A health care organization (HMO) is a network or company that pays a monthly or annual charge for health insurance coverage. An HMO consists of a consortium of providers of medical insurance that extends exposure to medical assistance rendered by physicians under the HMO contract. Such agreements allow for lower premiums because health care providers have the advantage of having clients negotiate them, but these arrangements often add additional limitations on members of the HMO.