State RegulationsFL specificDifficulty 1/5
A Health Maintenance Organization (HMO) is best described as:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Florida law, an HMO is a prepaid health care plan, regulated by the Office of Insurance Regulation, that arranges to provide a comprehensive package of covered health services to members through its contracted network of providers and facilities. Members prepay and receive care inside the organized delivery system, which distinguishes the HMO from indemnity products that simply reimburse any provider the insured selects.
Why the other options are wrong
- A) Open-provider reimbursement is the indemnity model, the structural opposite of the HMO's prepaid network delivery.
- B) An HMO is an organized system of care, not a single hospital selling surgical policies.
- D) HMOs are regulated by the Office of Insurance Regulation in Florida; they are not unregulated physician associations.
Memory hook
HMO = prepaid care through the network.