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Whether or not you're required to have a _______ to see a specialist or get other services. (HMO has to have one of these in your plan).

a) Referral
b) Prescription
c) Preauthorization
d) Copayment

1 Answer

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Final answer:

In a health maintenance organization (HMO) plan, a referral from a primary care physician is typically necessary to see a specialist or to obtain other services. This measure helps control costs and ensures the appropriate use of healthcare resources in a system where providers are paid a fixed amount per enrolled patient.

Step-by-step explanation:

When enrolled in a health maintenance organization (HMO), you are typically required to have a referral from your primary care physician before seeing a specialist or receiving other specific healthcare services. This is a characteristic feature of an HMO plan, which is a prepaid health care system where providers are paid a fixed amount per person enrolled, regardless of the number of services provided. The HMO structure seeks to contain costs and manage the utilization of health care services by requiring a referral to specialists and preauthorization for certain procedures, thereby avoiding unnecessary services. In this system, healthcare providers receive a fee for service, with the goal of providing cost-effective medical care while maintaining a high quality of service.

Other terms that are commonly associated with insurance policies include deductibles, which are the amounts paid by policyholders before the insurance coverage pays for services; copayments, flat fees paid by policyholders per service; and preauthorization, which is a requirement that the insurer approve a service before it is done. Each of these mechanisms serves to reduce moral hazard by sharing costs between the insurer and the insured, promoting responsible use of medical services.

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