Certified Medical Administrative Assistants (CMAA) Practice Exam

The health maintenance organization (HMO) is considered the oldest form of managed care plan. HMOs originated in the 1970s as a response to rising healthcare costs and aimed to provide a more efficient way to deliver health services. They operate on a model where members pay a fixed monthly fee in exchange for comprehensive healthcare services. This includes preventive care and wellness programs designed to keep patients healthy and reduce the need for more expensive medical interventions.

The HMO structure prioritizes in-network providers and coordinated care, emphasizing the role of primary care physicians as gatekeepers to specialized services. This model has paved the way for various other managed care arrangements, but HMOs distinguish themselves by their integrated approach to healthcare provision and cost management, making them foundational in the evolution of managed healthcare. Understanding the HMO structure is crucial for comprehending how managed care has developed over the years.