The 1973 HMO or Health Maintenance Organization is a United States federal act that passed or endorsed during December 1973. It responded to the concerns of the rapid increase of federal health insurance expenditures and concerns about the wellness and care to those people who are 65 years old and above, younger people with disabilities and undergo dialysis or transplant. The 1973 HMO act gives a trial program that encourages and promote the improvement and development of HMOs. It also granted loans to expand the HMO, removed certain limitations for qualified HMO. Lastly, the act reinforced the term HMO and its greater access to the employer-based market.
