What requirement did the Health Maintenance Organization (HMO) Act of 1973 impose on certain employers?

The requirement set forth by the Health Maintenance Organization (HMO) Act of 1973 mandated that employers offer HMO plans alongside traditional fee-for-service medical plans. This was a significant move to ensure that employees had access to managed care options, which were being increasingly recognized as a way to control healthcare costs while promoting preventive care and coordinated treatment.

By requiring employers to provide both HMO options and traditional plans, the legislation aimed to give employees a choice in their healthcare plan. This choice enhances competition between the different types of insurance, potentially leading to improved benefits and lower costs for consumers. The intention behind this dual offering was to foster a healthcare environment where managed care could be tested against traditional plans, allowing both employers and employees to evaluate different methods of healthcare delivery.

The other options do not reflect the actual provisions of the HMO Act. For instance, there was no mandate for employers to offer HMO plans exclusively or to entirely eliminate traditional medical coverage. Nor were employers required to fully fund HMO plans, as this would place an undue financial burden on employers, which the act did not stipulate. The focus was on providing options rather than eliminating existing ones.