What was the main goal of the original HMO Act of 1973?

The main goal of the original HMO Act of 1973 was to create new physician groups acting as prepaid practice groups. This legislation aimed to promote the establishment of Health Maintenance Organizations (HMOs), which operate on a model where members pay a fixed periodic fee in exchange for a range of healthcare services. This approach was designed to focus on preventive care and cost-effective health management, shifting away from traditional fee-for-service payment models that could lead to unnecessary medical expenditures.

By encouraging the development of these prepaid practice groups, the Act sought to ensure more comprehensive care and improve access to healthcare services while controlling costs. This was a pivotal moment in health policy, as it represented a move toward organized healthcare delivery systems, influencing the way care was provided and funded across the nation.

The other options do not align with the primary intentions of the HMO Act. For instance, while increasing profit margins for insurance companies might be a byproduct of such systems, it was not the fundamental purpose behind the legislation. Mandating health insurance for all citizens and eliminating out-of-pocket expenses, while significant health policy goals, were not specifically addressed in the original HMO Act. Instead, the focus was on establishing and supporting alternative healthcare delivery models that could address both cost containment and patient