What did the HMO Act of 1973 do?
The Health Maintenance Organization (HMO) Act of 1973 provided for a Federal program to develop alternatives to the traditional forms of health care delivery and financing by assisting and encouraging the establishment and expansion of HMOs.
How the HMO Act of 1973 contributed to the growth of managed care?
The Health Maintenance Organization (HMO) Act of 1973 was heralded as a major federal effort to change the health care delivery system by providing an alternative to the traditional solo practice fee-for-service system, in the form of the group practice prepaid plans, the health main- tenance organizations.
When did the HMO system become widespread in the US?
The first known HMO in the United States arrived in 1910; in 1929 the first large scale HMO was registered in California.
Why did the HMO Act of 1973 Fail?
“The long-awaited HMO Act of 1973 failed to resolve the nation’s health care crisis and nearly derailed the HMO movement…,” writes Coombs. Federal funding gave prepaid health care a legitimacy long denied by the medical profession, but the federal requirements for HMOs deterred many potential sponsors.”
What is the amendment to the HMO Act of 1973?
The federal HMO Act amended the Public Health Service Act, which Congress passed in 1944. The principal sponsor of the federal HMO Act was Sen. Edward M. Kennedy (MA)….Health Maintenance Organization Act of 1973.
| Citations | |
|---|---|
| Acts amended | Public Health Service Act of 1944 |
| Titles amended | 42 U.S.C.: Public Health and Social Welfare |
What was the main purpose of the Health Maintenance Organization Act of 1973 quizlet?
The Health Maintenance Organization Act of 1973 was designed to provide an alternative to the traditional fee-for-service practice of medicine. It was aimed at stimulating the growth of HMOs by providing federal funds to establish new HMOs.
What are HMOs in healthcare?
A type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO. It generally won’t cover out-of-network care except in an emergency. An HMO may require you to live or work in its service area to be eligible for coverage.
What were the main features of the HMO Act?
It provided grants and loans to provide, start, or expand a Health Maintenance Organization (HMO); removed certain state restrictions for federally qualified HMOs; and required employers with 25 or more employees to offer federally certified HMO options IF they offered traditional health insurance to employees.
Who regulates HMOs?
The US Health Care Financing Administration (HCFA) regulates HMOs and has instituted guidelines for reporting and quality assessment in an accreditation approach to quality assurance (see Chapter 15).
What was the initial purpose of an HMO?
what is the initial purpose of an HMO (health maintenance organization)e? to track patient care. offers a higher deductible with a spending account for out-of-pocket expenses. describe the concept of primary and secondary coverage and what impact it has on health coverage.
What was the amendment to the HMO Act of 1973?
What is the federal HMO Act?
The federal HMO Act amended the Public Health Service Act, which Congress passed in 1944. The principal sponsor of the federal HMO Act was Sen. Edward M. Kennedy (MA).
Who is the principal sponsor of the HMO Act?
The principal sponsor of the federal HMO Act was Sen. Edward M. Kennedy (MA). President Richard Nixon signed bill S.14 into law on December 29, 1973. It included a mandated Dual Choice under Section 1310 of the Act. Health Maintenance Organization (HMO) is a term first conceived of by Dr. Paul M. Ellwood, Jr.
What are the regulations for an HMO?
Official regulations setting out the standards and obligations required for HMOs were developed and implemented much later (in 1973, when the HMO Act was officially enforced). The HMO Act enabled financial tools like grants and loans to support the start or expansion of an HMO.
What are the benefits of HMOs?
For one thing, they not only offer emergency care services, but also provide a range of other services, such as preventative care, for a fixed payment that is determined in advanced. The HMO services can be delivered by health professionals who are contracted to treat patients in line with the HMOs standards.