PSI Ohio Insurance Practice Exam

Which of the following is a characteristic of Health Maintenance Organizations (HMOs)?

1. Higher premiums for wider access.

2. Preventive care as a focus.

3. Limited provider network.

4. Focus on specialized services.

The correct answer is: Preventive care as a focus.

The emphasis on preventive care as a focus is a defining characteristic of Health Maintenance Organizations (HMOs). HMOs are designed to promote health maintenance—hence the name—by incentivizing members to engage in preventive measures, such as regular check-ups, screenings, and health education. This proactive approach helps to reduce the risk of more serious health issues that might arise if routine care is neglected, ultimately contributing to lower healthcare costs over time. While it's true that HMOs often involve a limited provider network and may have lower overall costs due to their managed care structure, the distinguishing feature that aligns most closely with the core mission of HMOs is their commitment to preventive care. The idea is to keep members healthy and minimize the need for more extensive treatments by addressing health concerns early on.