The payment system that is used by health maintenance organizations (HMOs) is known as

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Capitation is the payment system used by HMOs, which pays a fixed amount per member per month, regardless of the amount of healthcare services a member may use. This system incentivizes HMOs to provide preventive care and manage costs. Medicaid and Medicare are government-sponsored insurance programs, and single payer is a healthcare system in which the government provides healthcare coverage for all citizens.

The Payment System That Is Used by Health Maintenance Organizations