Question

A ____ is a type of health care plan in which service providers essentially exchange price for volume to groups of employers.

a. PPO.

b. HMO.

c. PMO.

d. NPPO.

Answer 1

A _____is a type of health care plan in which service providers essentially exchange price for volume to groups of employers

Answer :B) HMO

Health maintenance organizations (HMOs) provide health insurance coverage for a monthly or annual fee. An HMO limits member coverage to medical care provided through a network of doctors and other healthcare providers who are under contract to the HMO. These contracts both allow for premiums to be lower than for traditional health insurance—since the health providers have the advantage of having patients directed to them—but they also add additional restrictions to the HMO's members.

Historically, PPO plans were the preferred choice among employer group participants. However, today, participants want more options for managed healthcare. Therefore, many groups offer HMO plans, as well. Because HMO premiums are less expensive, some participants favor HMO plans for their affordability, although services and freedoms typically associated with PPO plans are often restricted.