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It is false that the Health Maintenance Organization Act of 1973 made it harder for HMOs to grow and attract the clients and required all the employers.
What is Health Maintenance Organization Act?
A law was passed in the US on December 29, 1973, known as the Health Maintenance Organization Act. The Health Maintenance Organization Act, also referred to as the federal HMO Act, is a piece of federal legislation that establishes a pilot federal program to support the growth of health maintenance organizations (HMOs). The Public Health Service Act was updated by the federal HMO Act, which Congress passed in 1944. The Nixon administration advisors who were seeking for a means to reduce medical inflation had meetings with Ellwood and the other Interstudy group members that led to the conception of the HMO Act. It did not mandate that employers provide health insurance. The Act established the term "HMO" and increased HMOs' access to the employer-based market. The 1995 expiration of the Dual Choice clause.
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