Question

What was the main purpose of the health maintenance organization act of 1973?

Answer 1

The HMO Act of 1973 helped to cement the HMO into the U.S. health system by providing grants to start or expand HMOs, removing many restrictions imposed by the individual states, and required employers with more than 25 employees to offer a federally-certified HMO to employees.

Answer 2

The Health Maintenance act of 1973 is also known as the Federal HMO Act was a federal law. It's aim was development of health maintenance organizations. The bill was signed by President Richard Nixon. The act provided grants to start a Health Maintenance Organization, and removed state restrictions for Federal HMO's. Under the act the employers with twenty-five or more than twenty-five employees had t provide certified HMO options. Individual HMO's were provided an endorsement from the federal government. One drawback of the act was that it was delayed in implementation.