The Health Maintenance Organization Act of 1973 (Public Law 93-222), also known as the HMO Act of 1973, 42 U. S. C. § 300e, is a law passed by the Congress of the United States that resulted from discussions Paul Ellwood had with what is today the Department of Health and Human Services. Law is a system of rules enforced through a set of Institutions used as an instrument to underpin civil obedience politics economics and society The United States Congress is the bicameral Legislature of the federal government of the United States of America, consisting of two houses The United States Department of Health and Human Services ( HHS) is a Cabinet department of the United States government with the goal of protecting It provided grants and loans to provide, start, or expand a Health Maintenance Organization (HMO); removed certain state restrictions for federally qualified HMOs; and required employers with 25 or more employees to offer federally certified HMO options alongside traditional indemnity insurance upon request (the "dual choice provision"). "HMO" redirects here For other uses see HMO (disambiguation. An indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. HMOs were required to meet three basic requirements. These were to offer a specified list of benefits to all members, charge all member the same monthly premium, and be structured as a nonprofit organization.
The Act solidified the term HMO and gave HMOs greater access to the employer-based market, providing for the rapid expansion of HMOs in later years. No longer needed now that HMOs are widespread, the dual choice provision expired in 1995.
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