What was the main purpose of the Health Maintenance Organization Act of 1973?
Place caps on the rise of health insurance premiums
Transfer the control of HMOs from the federal government to private companies
Rein in the growing power of managed care
Provide an alternative to fee-for-service
The Correct Answer is D
Rationale:
A. Place caps on the rise of health insurance premiums: This option does not align with the main purpose of the Health Maintenance Organization (HMO) Act of 1973, which aimed to promote
the development of HMOs as an alternative to traditional fee-for-service models rather than directly addressing insurance premiums.
B. Transfer the control of HMOs from the federal government to private companies: The HMO Act of 1973 aimed to encourage the establishment of HMOs by providing federal grants and
loans, but it did not involve transferring control from the government to private companies.
C. Rein in the growing power of managed care: The HMO Act of 1973 actually facilitated the growth of managed care by providing federal support for the establishment of HMOs, rather than attempting to rein in their power.
D. Provide an alternative to fee-for-service: The primary purpose of the HMO Act of 1973 was to promote and facilitate the development of Health Maintenance Organizations (HMOs) as an
alternative healthcare delivery model to traditional fee-for-service arrangements. HMOs were intended to emphasize preventive care, cost containment, and coordination of services.
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Naxlex Comprehensive Predictor Exams
Related Questions
Correct Answer is A
Explanation
A. By integration of several organizations under the same ownership or contractual
arrangements: MCOs garner enormous buying power by integrating various healthcare providers and services under one ownership or through contractual agreements, which allows them to negotiate better rates with suppliers and providers.
B. By shared savings program under the ACA: While the shared savings program under the ACA aims to reduce healthcare costs, it is not the primary method through which MCOs gained their buying power.
C. By providing an array of health care services to a large community: Providing a wide range of services enhances the value offered by MCOs but does not directly lead to significant buying power.
D. By enrolling a large segment of the insured population: Enrolling a large number of insured
individuals helps MCOs spread risk but is not the main factor that provides them with enormous buying power.
Correct Answer is D
Explanation
A. Hospital downsizing in the United States: Hospital downsizing generally aims to reduce costs and improve efficiency, not increase healthcare costs.
B. Transition from primarily government institutions to community institutions: This transition often seeks to improve accessibility and cost-effectiveness in healthcare delivery rather than causing rising costs.
C. Advanced sanitation, nursing, and medical services: While these contribute to better health outcomes and possibly higher initial investments, they are not the primary driver of rising healthcare costs.
D. Third-party payment: Third-party payment systems, such as insurance companies, contribute
to rising healthcare costs due to factors like administrative expenses, profit margins, and complex billing processes.
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