Discuss the HMO act of 1973: Key Points

HMO ACT OF 1973
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Beliefs and culture in America have influenced the health care programs that are predominantly privately financed (Shi & Singh, 2015). The Health Maintenance Organization Act (HMO Act of 1973) was enacted to improve the delivery of patient care and control costs. The HMOs are managed care organizations, which enroll employees in health plans where there are contractual agreements with the providers and not the traditional insurance companies (Shi & Singh). The Act established conditions to operationalized HMOs that qualified for loan guarantees. The qualified HMOs also met quality assurance and solvency standards and employers offered health benefits to employees depending on their choice of benefit plan.
The Act also contained provisions health maintenance organizations were to provide fiscally sound operations to avoid insolvency while assuming the full financial risk (enotes.com, n.d.). The enrollees to the organizations were broadly representative of the population, with open enrollment being supported. The HMO Act further highlighted that the health maintenance organization were to allow potential members to enroll regardless of their health status (enotes.com, n.d.). The HMOs were to provide basic and supplemental services to each member, wit...