Which term describes a healthcare organization that provides services to enrolled individuals for a prepaid fee?

• A. Fee for Service
• B. Health Maintenance Organization
• C. Premium Plan
• D. Fee Schedule

Answer: (B)

An HMO describes a prepaid, enrolled care model. In a Health Maintenance Organization, members pay a fixed premium to access a network of providers, and care is coordinated through a primary care physician. The plan uses prearranged contracts and referral requirements to manage costs and services, making most routine care more affordable and predictable for the enrollee. This prepaid setup is what distinguishes it from models where payment is made per service (fee-for-service) or from terms like premium plan or fee schedule, which don’t describe a prepaid enrollment arrangement.