Health Maintenance Organization Act of 1973

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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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References in periodicals archive ?
Although there were a few prepaid health plans dating back to about 1929, Health Maintenance Organizations (HMOs) did not gain a foothold until 1973 with the passage of the Health Maintenance Organization Act. Growth of HMOs was slow during the 1980s and expanded during the 1990s.
The ACO payment structure to health care providers may be new, but the goal of providing high- quality, coordinated care in a way that is cost-effective goes back to the earliest ideals of managed care as it was envisioned when the federal Health Maintenance Organization Act was signed in 1973.
The Health Maintenance Organization Act of 1973 gave rise - through grants and loans - to the start of managed care.
The Illinois General Assembly has amended the Illinois Insurance Code (Code) and the Health Maintenance Organization Act to provide for circumstances in which employees who are terminated or whose hours fall below the minimum hours necessary for coverage may continue to be covered under a group policy or group HMO coverage plan.
Amendments to section 4-9.2 the Health Maintenance Organization Act mirror changes to Section 367e of the Code, except that continuation rights apply to employees covered under an HMO group contract, and the HMO is responsible for notifying the employee of the availability of premium reductions under ARRA, and for providing a writ ten explanation of continuation rights if an employer does not.
In 1973, acting on the recommendations of health care scholars, Congress enacted the federal Health Maintenance Organization Act, giving its imprimatur to alternative methods of delivery and financing health care services.
The federal Health Maintenance Organization Act of 1973 ("HMO Act") was its first attempt to change the underlying structure of health care delivery through the targeted use of market forces.
Those whose memories stretch back more than two news cycles might even remember that the Health Maintenance Organization Act of 1973 emerged out of widespread public disgust with a fee-for-service system then run by doctors.
With the passage of the Health Maintenance Organization Act in 1973 and the subsequent acceptance of the concept of diagnostic related groups, the federal government attempted to better regulate health care delivery (Schriner & Batavia, 1995).
In 1973, Congress passed the Health Maintenance Organization Act to encourage the growth of organized health care delivery systems sponsored by the private sector.
Spurred by the passage of the Health Maintenance Organization Act of 1973, more employers have offered the choice of an HMO as an alternative to other health insurance benefits.5 Usually providing comprehensive health care at a fixed fee, Health Maintenance Organizations have been viewed as a possible lower cost alternative to other health care.

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