INBDE (Integrated National Board Dental Examination) Practice Exam

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What type of plan is characterized by a health maintenance organization (HMO)?

Capitation plan
Individual practice association
Staff model
Network model

The correct answer is: Capitation plan

An HMO is a type of health insurance that has a provider network and requires members to select a primary care physician (PCP), who will coordinate all of their healthcare needs. A capitation plan is a type of payment arrangement in which healthcare providers are paid a set amount per patient, regardless of the services provided. This aligns with an HMO's emphasis on preventive care and managing overall health, rather than fee-for-service arrangements. The other options, individual practice association, staff model, and network model, refer to different types of HMO structures, but do not directly address the type of plan itself. Therefore, option A, capitation plan, is the most accurate description of an HMO.