Question

1. Health maintenance organizations, or HMOs, differ from the indemnity insurance system by: A. Reimbursing either the provider or member for the costs of care but taking no responsibility for providing care B. Not requiring providers to share financial risk C. Developing cost-based premiums for their beneficiaries D. Taking responsibility for both financing and delivering health care services to a defined group of beneficiaries

Answer 1

Answer:

Health Maintenance Organizations or HMOs

How different from the indemnity insurance system?

D. Taking responsibility for both financing and delivering health care services to a defined group of beneficiaries.

Explanation:

HMOs are healthcare maintenance organizations which coordinate the provision of health services and care to registered patients.  They provide health insurance services to their patients for a monthly fee.  They ensure cost-effectiveness in healthcare delivery through their coordination efforts.

On the other hand, indemnity insurance system involves some contractual agreements in which one party (the insurer or insurance company) guarantees compensation for actual or potential losses or damages sustained by another party (the insured).