Final answer:
A health maintenance organization (HMO) is a type of medical insurance plan known as managed care, which aims to control healthcare costs and provides healthcare services through a network of providers. In an HMO, individuals pay a fixed amount per person enrolled in the plan, regardless of how many services are provided.
Step-by-step explanation:
A health maintenance organization (HMO) is an example of a type of medical insurance plan known as managed care. Managed care plans, including HMOs, aim to control healthcare costs by providing healthcare services through a network of doctors, hospitals, and other healthcare providers who have agreed to provide services to plan members at discounted rates. In an HMO, individuals pay a fixed amount per person enrolled in the plan, regardless of how many services are provided. This fixed payment incentivizes healthcare providers to limit the quantity of care provided, reducing the moral hazard problem.