Health Maintenance Organization Act of 1973

(redirected from HMO Act)

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.
References in periodicals archive ?
com, Congressman Ron Paul added that "Congress needs to let markets work by aggressively repealing health-care laws, including: the HMO Act of 1973; the Medicare Part D prescription drug benefit passed in 2003; and the Obamacare bill passed in 2010.
Healthcare spending took off in 1965 when the government started subsidizing care of the elderly and the poor through Medicare and Medicaid, and expanded further as legislation such as the HMO Act of 1973 shifted responsibility from the individual to everyone in the insurance pool.
The book covers many topics including, but not limited to, a brief history of health insurance prior to the 1970's, the enactment of the HMO Act, health care in rural America, Antitrust Legislation, private and public sector HMO development, accountability, and health promotion strategies.
The Federal HMO Act of 1973 sought to foster the creation of health maintenance organizations.
The HMO Act of 1973 gave HMOs several strategic advantages over traditional indemnity health insurance providers and was justified on the grounds that there were public policy benefits associated with the "more cost efficient" HMOs.
Illinois enacted [section]4-10 of their HMO Act, which provided for an independent medical review should an HMO deny a covered service on the basis of "medical necessity.
Although Congress may not have given the then-President everything he asked for, one result of the Nixon Administration's push towards health care reform was passage of the HMO Act of 1973.
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.
The original intent of the HMO Act (1973) was to stimulate the interests of consumers and providers in the HMO concept, and to allow people to select, for themselves, either a prepaid system for obtaining health services or the more traditional fee-for-service model of healthcare delivery.
The HMO Act of 1973 set standards for care provided by HMO's and provided incentives for HMO development.