Final answer:
In a Health Maintenance Organization (HMO), members typically pay a small co-payment for healthcare services as opposed to a fee-for-service model. HMOs receive a fixed amount per enrolled member, and providers manage the allocation of healthcare resources.
Step-by-step explanation:
In a Health Maintenance Organization (HMO), members usually pay a small co-payment (co-pay) for their visits to healthcare providers. Unlike in a fee-for-service model where medical care providers are reimbursed according to the services they provide, HMOs operate on a fixed payment system. They receive a set amount per person enrolled, regardless of how many services those individuals use.
This system also shifts some responsibility to providers to manage healthcare resources economically while ensuring patients receive appropriate care. It's important to note that while co-payments in HMOs are typically smaller, members may also face other out-of-pocket expenses like deductibles, where they pay a fixed amount before insurance kicks in.