Question

An organization that offers health insurance at a fixed monthly premium with little or no deductible and works through a primary care provider is called a(n)_______________.

1) Preferred provider
2) Health maintenance organization
3) Member physician
4) Private health provider

Answer 1

A Health Maintenance Organization, or HMO, is an organization that offers health insurance with a fixed monthly premium and little or no deductible, focused on providing care through a network of providers for a set fee.

Step-by-step explanation:

An organization that offers health insurance at a fixed monthly premium with little or no deductible and works through a primary care provider is called a Health Maintenance Organization (HMO). HMOs provide a type of health insurance coverage that is paid for by a fixed amount per person enrolled, regardless of how many services are provided. This is in contrast to a fee-for-service system where providers are paid according to the services they perform, potentially leading to higher overall costs. HMOs aim to minimize the 'adverse selection' problem in insurance markets, which can occur when there is asymmetric information between the insurance company and the insured parties, skewing coverage towards those who expect to need it most.