Identify the type of HMO cost-containment method that requires patients to obtain approval for services before they receive the treatment.
A) restricting patients' choice of providers
B) requiring preauthorization for services
C) controlling drug costs
D) cost-sharing

Question

Quizplus · Accepted Answer

Requiring preauthorization for services is a cost-containment method used by Health Maintenance Organizations (HMOs) to ensure that the services provided to patients are medically necessary before the treatment is given. This process involves obtaining approval from the HMO before certain medical services can be performed, helping to control costs by avoiding unnecessary procedures.

Identify the Type of HMO Cost-Containment Method That Requires Patients