Health Maintenance Organization Act 1973-Social Security
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Health Maintenance Organization Act 1973-Social Security
The health maintenance organization act of1973 was enacted on 29th December 1973asa United States Statue. The federal law, formerly known as federal HMO’s, promotes health maintenance organizations’ formation by providing federal programs. In 1944, the public health Act was amended by the HMO act. Dr. ELWOOD Paul started the organization. Through discussion between Ellwood and his friends in the inter-study group, Ellwood later started the HMO act of 1973.
The Act provided loans and grants for HMO, eliminated restrictions for the qualified HMO’s, and offered health insurance to employees. The insurance cover was free to all employees since the ActAct did not want the employers to offer health insurance. The ActAct later led to increased access to the employer-based market.
Benefits of the Act
The ActAct has led to money development. The wealth or productivity of a region is the basis of the value of money both in the present and past. However, lack of awareness has resulted in unutilized development ability. Also, the ActAct has led to improved benefits package to the employees and override on some laws.
Qualification of Qualified HMO
There are requirements that one needs to become a qualified HMO. First, one must be able to offer comprehensive benefits on an equitable basis. Also, the benefits should be accessible to a broad population. Finally, it is important to note that the prices should be lower than the available insurance covers.
In conclusion, the formation of therefore resulted in the endorsement of the federal government to individual HMOs. Also through dual support, it has led to marketing support.