Accident & Health FundamentalsQuestion 662 of 716
A distinguishing feature of an HMO is that it:
a.Reimburses the insured after the fact on a fee-for-service basis
b.Provides prepaid care through network providers, emphasizing preventive services, usually with low copays
c.Operates with no provider network at all
d.Covers only inpatient hospital stays and provides no benefits for routine or preventive outpatient office visits
Explanation
An HMO delivers prepaid, managed care through its network with an emphasis on prevention and low member cost-sharing. Fee-for-service reimbursement and no network describe indemnity plans.
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