All Topics  
Health Maintenance Organization Act of 1973

 

 
   Email Print
   Bookmark   Link
 

 

Health Maintenance Organization Act of 1973
 
 
  Topics Health Maintenance Organization Act of 1973 Topic Home

The Health Maintenance Organization Act of 1973 (Public Law 93-222), also known as the HMO Act of 1973, 42 U.S.C. § 300e, is a law
LAW

LAW may refer to:* Anti-tank warfare, e.g. the US Army M72 LAW or the British Army LAW 80*Palestinian Society for the Protection of Human Rights ...
 passed by the Congress of the United States that resulted from discussions Paul Ellwood had with what is today the Department of Health and Human Services
United States Department of Health and Human Services

The United States Department of Health and Human Services , is a United States Cabinet department of the United States government of the United States with the goal of protecting the health of all Americans and providing essential human services....
. It provided grants and loans to provide, start, or expand a Health Maintenance Organization
Health maintenance organization

A health maintenance organization is a type of managed care that provides a form of health insurance in the United States that is fulfilled through hospitals, doctors, and other providers with which the HMO has a contract....
 (HMO); removed certain state restrictions for federally qualified HMOs; and required employers with 25 or more employees to offer federally certified HMO options alongside traditional indemnity
Indemnity

An indemnity is a sum paid by A to B by way of Damages for a particular loss suffered by B. The indemnifying party may or may not be responsible for the loss suffered by the indemnified party ....
 insurance upon request (the "dual choice provision").






Discussion
Ask a question about 'Health Maintenance Organization Act of 1973'
Start a new discussion about 'Health Maintenance Organization Act of 1973'
Answer questions from other users
Full Discussion Forum



Encyclopedia


The Health Maintenance Organization Act of 1973 (Public Law 93-222), also known as the HMO Act of 1973, 42 U.S.C. § 300e, is a law
LAW

LAW may refer to:* Anti-tank warfare, e.g. the US Army M72 LAW or the British Army LAW 80*Palestinian Society for the Protection of Human Rights ...
 passed by the Congress of the United States that resulted from discussions Paul Ellwood had with what is today the Department of Health and Human Services
United States Department of Health and Human Services

The United States Department of Health and Human Services , is a United States Cabinet department of the United States government of the United States with the goal of protecting the health of all Americans and providing essential human services....
. It provided grants and loans to provide, start, or expand a Health Maintenance Organization
Health maintenance organization

A health maintenance organization is a type of managed care that provides a form of health insurance in the United States that is fulfilled through hospitals, doctors, and other providers with which the HMO has a contract....
 (HMO); removed certain state restrictions for federally qualified HMOs; and required employers with 25 or more employees to offer federally certified HMO options alongside traditional indemnity
Indemnity

An indemnity is a sum paid by A to B by way of Damages for a particular loss suffered by B. The indemnifying party may or may not be responsible for the loss suffered by the indemnified party ....
 insurance upon request (the "dual choice provision"). HMOs were required to meet three basic requirements. These were to offer a specified list of benefits to all members, charge all members the same monthly premium, and be structured as a nonprofit organization.

The Act solidified the term HMO and gave HMOs greater access to the employer-based market, providing for the rapid expansion of HMOs in later years. No longer needed now that HMOs are widespread, the dual choice provision expired in 1995. This has led some large employers to cease offering HMOs, replacing them instead with Preferred provider organization
Preferred provider organization

In health insurance in the United States, a preferred provider organization is a managed care organization of medical doctors, hospitals, and other health profession who have covenanted with an insurer or a third-party administrator to provide health care at reduced rates to the insurer's or administrator's clients....
s (PPOs).