Another way in which HMOs seek to reduce costs is by providing care only within a restricted geographical area.
Cost containment[ edit ] Although businesses pursued the HMO model for its alleged cost containment benefits, some research indicates that private HMO plans don't achieve any significant cost savings over non-HMO plans.
These doctors act as "gatekeepers" to coordinate all the basic health care needs for their patients. In this case, physicians are direct employees of the HMOs.
Three questions are addressed. This act had three main provisions: Grants and loans were provided to plan, start, or expand an HMO Certain state-imposed restrictions on HMOs were removed if the HMOs were federally certified Employers with 25 or more employees were required to offer federally certified HMO options alongside indemnity upon request This last provision, called the dual choice provision, was the most important, as it gave HMOs access to the critical employer-based market that had often been blocked in the past.
Group model HMOs are also considered closed-panel, because doctors must be part of the group practice to participate in the HMO - the HMO panel is closed to other physicians in the community.
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