What was the main goal of the HMO Act?

The main goal of the HMO Act was to reduce the cost of health care through preventative care. This landmark legislation, passed in 1973, aimed to promote the development of Health Maintenance Organizations (HMOs), which are designed to provide comprehensive health services to members at a lower cost. By emphasizing preventative care, HMOs encourage members to seek medical attention before conditions become more serious and expensive to treat. This preventative approach not only helps individuals maintain their health but also reduces overall healthcare costs by minimizing hospitalizations and emergency care.

The focus on preventative care is critical because it shifts the medical model from reactive treatment to proactive health management. By implementing regular check-ups, screenings, and health education, HMOs can effectively lower the incidence of chronic diseases and manage health risks more efficiently. This ultimately leads to lower healthcare expenditures for both individuals and the healthcare system as a whole.