Final answer:
An HMO reimburses physicians on a 'per-person, per-month' contract through capitation payments, a fixed amount per enrolled individual, counteracting the moral hazard by incentivizing cost-efficient care.
Step-by-step explanation:
The type of reimbursement by a health maintenance organization (HMO) to a group of physicians on a "per-person, per-month" contract is known as a capitation payment. In this system, medical care providers are paid a fixed amount per person enrolled in the plan, regardless of how many services each person utilizes.
This model is in contrast to the fee-for-service system, where providers are paid according to the services they provide. With capitation, providers have to manage their resources wisely between patients, as they receive the same payment whether a patient requires many services or few. This type of reimbursement can help address the moral hazard problem by incentivizing providers to focus on preventative care and cost-effective treatment options.