Identify the type of HMO cost-containment method that requires providers to use a formulary.
A) restricting patients' choice of providers
B) controlling drug costs
C) requiring preauthorization for services
D) cost-sharing

Question

Quizplus · Accepted Answer

Controlling drug costs is achieved by using a formulary, which is a list of approved medications that the HMO covers. This method helps manage and reduce the costs associated with pharmaceuticals by encouraging the use of generic drugs and negotiating better prices for drugs on the formulary.

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