GBA 1 - Study Guide | Questions with 100% Correct Answers | Verified

What was the purpose of the Health Maintenance Organization Act of 1973? - The health maintenance organization action of 1973 provided federal initiatives - consisted of federal grants and loans to organizations wishing to investigate the feasibility of "federally qualified HMO" How did the passage of the Health Maintenance Organization Act of 1973 affect the growth of HMOs? - The government began to withdraw its funding during the Reagan administration. Smaller plans did not survive. Briefly explain why the preferred provider organization (PPO) concept was developed? - PPO was sponsored by national insurance companies, third party administrators, BCBS plans, and hotel organizations. PPO gained quick popularity with employers that wanted cost savings but were unwilling to reduce provider choice as much that required HMOs Why didnt many employers realize long-term costs savings with PPO? - Because they were primarily discounted fee-for-service arrangements with little focus on utilization control. What steps did PPO companies take to correct this problem? - Increase the monitoring of utilization, implementing quality control and surveying member satisfaction