Question

HMOs were initially created to

- expand health care coverage
- control wages and prices in health care
- compete against hospitals
- lower health care costs

Answer 1

HMOs were initially created to expand health care coverage, lower health care costs, and require that everyone in the United States acquire some form of health insurance.

Step-by-step explanation:

In a fee-for-service health financing system, medical care providers receive reimbursement according to the cost of services they provide. An alternative method of organizing health care is through health maintenance organizations (HMOs), where medical care providers receive reimbursement according to the number of patients they handle, and it is up to the providers to allocate resources between patients who receive more or fewer health care services. HMOs were initially created to expand health care coverage, lower health care costs, and to require that everyone in the United States acquire some form of health insurance. These organizations were designed to provide more affordable and accessible health care options for individuals and control rising health care costs.