TeachMeFinance.com - explain Cost-Based Health Maintenance Organization
Cost-Based Health Maintenance Organization The term 'Cost-Based Health Maintenance Organization ' as it applies to the area of Medicare in the United States can be defined as ' A type of managed care organization that will pay for all of the enrollees/members' medical care costs in return for a monthly premium, plus any applicable deductible or co-payment. The HMO will pay for all hospital costs (generally referred to as Part A) and physician costs (generally referred to as Part B) that it has arranged for and ordered. Like a health care prepayment plan (HCPP), except for out-of-area emergency services, if a Medicare member/enrollee chooses to obtain services that have not been arranged for by the HMO, he/she is liable for any applicable deductible and co-insurance amounts, with the balance to be paid '.
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