State RegulationsFL specificDifficulty 3/5
How does a prepaid (limited) health service organization differ from a comprehensive HMO under Florida law?
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 B is correct
Under Chapter 636, Florida Statutes, a prepaid (limited) health service organization provides a defined, limited package of health services on a prepaid basis, whereas an HMO arranges a comprehensive range of basic health services for its members. Both are regulated Florida entities; the difference is scope, a limited prepaid menu versus comprehensive managed coverage, and confusing the two leads to wrong answers about which chapter governs each.
Why the other options are wrong
- A) Chapter 636 entities are regulated in Florida; exemption from regulation is not the distinction.
- C) The scope runs the other way: the limited organization covers specified services, while the HMO's package is comprehensive.
- D) Prepaid limited health service organizations operate within Florida under Chapter 636; geography is not the distinction.
Memory hook
Limited prepaid menu vs HMO full plate.