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Health Maintenance Organization Act of 1973
(redirected from HMO Act of 1973)

   Also found in: Wikipedia 0.01 sec.
Health Maintenance Organization Act of 1973
Legislation in the United States that offered grants and other incentives to start or expand a health maintenance organization (HMO), which is a nonprofit organization offering health insurance to a group of people at the same monthly premium. It also required companies with more than 25 employees to offer employees the option to buy into an HMO if these companies also offered standard health insurance. (This latter provision expired in 1995.) The Act made HMOs a popular health insurance choice for many companies and individuals.


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Among the federal measures: * The Federal HMO Act of 1973 sought to foster the creation of health maintenance organizations.
Paul Ellwood, the man who invented the phrase "health maintenance organization" and who convinced Richard Nixon to support the HMO Act of 1973, the law that subsidized the formation of the U.
The HMO Act of 1973 gave millions of dollars to HMOs, which, at the time, constituted a tiny share of the market.
 
 
 
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