Health Insurance Coursework Example | Topics and Well Written Essays - 1250 words

Health Insurance - Coursework ExampleHMOs eldest emerged in the 1940s with Kaiser Permanente in California and the Health Insurance Plan in New York. However, they were non adopted widely until the 1970s, when health worry be increased and the federal government passed the HMO twist of 1973, which required that companies that offered health insurance and employed more than 25 employees include an HMO option. The law in addition supplied start-up subsidies for these health plans (Barsukiewicz, Raffel, & Raffel, 2010).HMOs often operate on a prospective or prepaid payment governance where providers are paid a capitated feeone flat amount per beneficiaryper month, quarter, or year, regardless of the frequency or quantity of services used (Barsukiewicz, Raffel, & Raffel, 2010). In staff model HMOs, such as Kaiser Permanente, providers are salaried, but this arrangement is the exception, not the norm.In-group policies, where health insurance is provided through the employer, the e mployer pays the insurance keep company a set amount agreed upon in advance. According to Austin and Wetle (2012), employers covered 83% of premium costs for single coverage and 73% for family coverage in 2009. The employee, or beneficiary, paid the difference. Then, the health insurance company pays the provider directly.HMOs have the strictest admission price structure, called a gatekeeper model, where patients must have a primary condole with physician (PCP) through who all care is routed. PCPs decide which diagnostic tests are needed and control access to specialists through referrals, deciding when it is necessary for a patient to seek more expensive specialty care (Barsukiewicz, Raffel, & Raffel, 2010).HMOs are usually the least expensive health plans, offer predictable costs for health care, the least administrative paperwork, and cover preventive care (Barsukiewicz, Raffel, & Raffel, 2010). However, HMOs also restrict direct access to specialists by requiring referrals by a PCP, requiring patients to see a provider in