An HMO That Contracts with Two or More Independent Group

question 22

Multiple Choice

An HMO that contracts with two or more independent group practices to provide medical services to covered members is called a(n)

• A)group model HMO.
• B)network model HMO.
• C)staff model HMO.
• D)individual practice association HMO.

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Definitions:

Equilibrium Premium

The price at which the supply and demand for insurance coverage balance, setting a market rate for premiums.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the point where the supply and demand curves intersect.

Diminishing Marginal Utility

The principle that says additional units of a good or service provide less added satisfaction than previous units.

Risk-Averse

describes an individual or entity that prefers to minimize risk, choosing options that are deemed safer or involve less uncertainty.