A health maintenance organization (HMO) pulls together a group of providers willing to provide services at an agreed upon rate in exchange for employers:
A)limiting employees to these providers for health services.
B)paying 30 percent of employee salary to the HMO.
C)laying off all contingent workers who are not eligible for insurance.
D)providing free child care assistance to employees.

Question

Quizplus · Accepted Answer

The main feature of HMOs is that they have a network of healthcare providers who agree to provide healthcare services at a lower cost in exchange for the HMO's promise of bringing in a large group of patients. In order to make this work, the HMO will typically require that its members use only providers within the network. It's therefore necessary for employees to be limited to these providers for health services if the HMO is to function properly. None of the other options listed have anything to do with how an HMO operates.

A Health Maintenance Organization (HMO) Pulls Together a Group of Providers