What are some of the pros and cons faced by Health Maintenance Organizations HMOs with regulation

journal article

Health Maintenance Organizations and the Market for Health Services

Law and Contemporary Problems

Vol. 35, No. 4, Health Care: Part 2 (Autumn, 1970)

, pp. 716-795 (80 pages)

Published By: Duke University School of Law

https://doi.org/10.2307/1190949

https://www.jstor.org/stable/1190949

Read and download

Log in through your school or library

Alternate access options

For independent researchers

Read Online

Read 100 articles/month free

Subscribe to JPASS

Unlimited reading + 10 downloads

Read Online (Free) relies on page scans, which are not currently available to screen readers. To access this article, please contact JSTOR User Support. We'll provide a PDF copy for your screen reader.

With a personal account, you can read up to 100 articles each month for free.

Get Started

Already have an account? Log in

Monthly Plan

  • Access everything in the JPASS collection
  • Read the full-text of every article
  • Download up to 10 article PDFs to save and keep
$19.50/month

Yearly Plan

  • Access everything in the JPASS collection
  • Read the full-text of every article
  • Download up to 120 article PDFs to save and keep
$199/year

Journal Information

Established in 1933, Law and Contemporary Problems is Duke Law School's oldest journal. During the first 40 years of publication, the quarterly journal was entirely edited and managed by faculty. In the 1970's a student editorial board was added, although the journal continues to enjoy substantial faculty input. Distinctive in format and content, each issue is devoted to papers on a particular topic of contemporary interest. Usually the topics reflect an interdisciplinary perspective with contributions by lawyers, economists, social scientists, scholars in other disciplines, and public officials. The journal occasionally publishes student notes related to past symposia. Subscribers include general university libraries, government agencies, and foreign educational institutions, as well as the more traditional law libraries and law firms. Law and Contemporary Problems is monitored by a general editor and a faculty advisory committee.

Publisher Information

Duke Law School was established as a graduate and professional school in 1930. Its mission is to prepare students for responsible and productive lives in the legal profession. As a community of scholars, the Law School also provides leadership at the national and international levels in efforts to improve the law and legal institutions through teaching, research, and other forms of public service. Although Duke University is young by comparison to other major American universities, its academic programs and professional schools together have attained an international stature and a reputation for quality and innovation that few universities can match. Among the Law School's unique strengths are an extensive network of interdisciplinary collaboration across the Duke campus and an emphasis in teaching and research initiatives addressing global and international issues.

Rights & Usage

This item is part of a JSTOR Collection.
For terms and use, please refer to our Terms and Conditions
Law and Contemporary Problems © 1970 Duke University School of Law
Request Permissions

A Health Maintenance Organization (HMO) provides a wide range of benefits that cover the entire health care spectrum, from preventive care and education to physician care, surgery and hospitalization. Health care is typically managed by primary care physicians, specialists, hospitals and labs inside the provider network, with premiums and co-payment for certain services or prescriptions.

Since contracting discounts from a network of providers is one of the primary ways an HMO maintains cost effectiveness, treatment received outside the network is usually not covered. While an HMO is more restrictive than other plans, doctor visits and health care can be simple, easy and reliable. If there is a need to see a specialist, the doctor will recommend appropriate resources and often make the scheduled appointment on the patient’s behalf.1

Advantages of HMOs

Disadvantages of HMOs

Preventive CareHMO plans are focused on wellness and encourage members to seek medical treatment early and to have annual checkups. HMOs often provide helpful and timely information to their members about staying healthy. Primary Care Physician RestrictionsSpecialized medical attention can be more difficult to obtain with an HMO plan and members cannot see a specialist without a referral from their Primary Care Physician.
Least Expensive Health InsuranceInstead of a deductible, most HMO plans have monthly premiums and small co-payments for medical services and treatments, regardless of a member’s medical needs. No Coverage for Out-of-Network ServicesHMOs will likely not cover a visit to a doctor not in the HMO network, even if there are no network providers in the area.
No Lifetime Maximum PayoutUnlike other health insurance plans, many HMO policies do not have a lifetime maximum payout. They will pay for medical needs as long as people are members of the plan. Strict DefinitionsThe definitions for HMO plans tend to be very limited. For example, an emergency room visit may only be covered if it meets the company’s definition of an “emergency.”
Less Complicated BillingBilling systems for HMOs are usually less complex than other plans, so members experience fewer problems. Patient QuotasPhysicians who participate in HMOs are typically required to see a minimum number of patients every day. This limits the time they can spend with a patient to address their needs.
More Difficult to Change DoctorsMany HMOs discourage members from changing primary care physicians and may limit changing primary care doctor to once or twice over time.
TestsMany HMOs require that diagnostic tests be approved before payment. This can delay health care treatment until paperwork is resolved.2

1Individual Health Plans, “Health Maintenance Organizations” http://www.individual-health-plans.com/hmoplan.htm 2U.S. Insurance Online, “HMOs” http://www.usinsuranceonline.com/health-insurance/plans/hmo.php

What are the advantages and disadvantages of health maintenance organizations HMOs?

The HMO charges a fixed monthly fee so its members can receive health care. There will be a small co-payment for each doctor visit; however with the HMO, fees can be forecasted unlike a fee-for-service insurance plan. Although freedom of choice is given up, out-of-pocket expenses are very low.

What are negatives about HMOs?

Disadvantages of HMO plans HMO plans require you to stay within their network for care, unless it's a medical emergency. If your current doctor isn't part of the HMO's network, you'll need to choose a new primary care doctor.

What is a health maintenance organization or HMO quizlet?

Health Maintenance Organization (HMO) An organization that provides its members with basic healthcare services for a fixed price and for a given time period.

Which of the following regulates the quality of care provided by a health maintenance organization?

The US Health Care Financing Administration (HCFA) regulates HMOs and has instituted guidelines for reporting and quality assessment in an accreditation approach to quality assurance (see Chapter 15).