Health Maintenance Organization (HMO) is a healthcare organization that provides certain services to enrolled individuals in exchange for a prepaid fee. What does the acronym HMO stand for?

• A. Health Management Office
• B. Health Maintenance Organization
• C. Hospital and Medical Organization
• D. Health Medical Organization

Answer: (B)

Health Maintenance Organization stands for a prepaid, organized system that provides comprehensive healthcare services to enrolled members, typically with a primary care physician as the gatekeeper and a defined network. The prepaid fee means members pay upfront or through monthly premiums rather than paying per visit, and the emphasis is on preventive care and coordinated services within the network. Other phrasing like Health Management Office, Hospital and Medical Organization, or Health Medical Organization isn’t used to describe this model, since they don’t capture the prepaid, networked approach and focus on prevention that define an HMO.