Which of the Following Is a Characteristic of a Health

question 31

Multiple Choice

Which of the following is a characteristic of a health maintenance organization (HMO) ?

• A)unlimited choice of health-care providers
• B)no premiums until care is provided
• C)narrow,limited,medical services provided
• D)great emphasis on cost containment

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Definitions:

Straight-Line Depreciation

A method of calculating depreciation of an asset by evenly spreading its cost over the expected useful life.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for the effects of taxes, reflecting the net cost of capital to the company.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, which can vary by income level and jurisdiction.

Avoidable Costs

Avoidable costs are expenses that can be eliminated if a particular decision is made or if a certain activity is stopped.