Answer:
The correct answer is C) HMO. HMO stands for Health Maintenance Organization.
Step-by-step explanation:
Here's why:
1. Definition: An HMO is a type of managed care health insurance plan that provides healthcare services to a voluntarily enrolled group of people. It operates on a prepaid basis, meaning that the members pay a fixed amount per month, known as a premium, regardless of the amount of services they use.
2. Contracted health care services: HMOs have agreements with a network of healthcare providers, including doctors, hospitals, and specialists. These providers agree to offer their services to HMO members at discounted rates in exchange for a steady stream of patients. HMO members are required to receive their healthcare services from the providers within the HMO's network.
3. Fixed amount per member per month: HMOs typically charge a fixed amount, called a capitation fee, per member per month. This fee covers a range of healthcare services, including preventive care, diagnostics, and treatment. The fee remains the same regardless of the level of services used by individual members.
4. Geographic area: HMOs operate within specific geographical areas. They establish their networks of healthcare providers in a particular region to ensure that members have access to care within a reasonable distance from their residence.
By paying a fixed amount per member per month for contracted health care services in a specific geographic area, HMOs aim to provide comprehensive and cost-effective healthcare to their enrolled members.