Question

select all that apply
which statements characterize a health maintenance organization (hmo)? (more than one answer may be correct.)
□ hmo hopes to remove any incentive to provide more services than the patients really need.
□ hmos tend to be more expensive than other types of health care plans.
□ patients are allowed to see only medical personnel who are affiliated with the hmo.
□ physicians work on salary instead of being paid a fee for each service.

Explanation:

• HMOs aim to prevent over - servicing by removing incentives for unnecessary services.
• In HMOs, physicians are salaried, reducing the incentive for over - treatment (unlike fee - for - service where more services mean more pay).
• HMOs typically have a network of affiliated medical personnel, and patients usually see within this network.
• HMOs are generally not more expensive than other plans (e.g., traditional indemnity plans are often more costly).

Answer:

• HMO hopes to remove any incentive to provide more services than the patients really need.
• Patients are allowed to see only medical personnel who are affiliated with the HMO.
• Physicians work on salary instead of being paid a fee for each service.