An organization that provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium is:

• A. A Professional Practitioner Group
• B. A PPO
• C. A Health Managed Hospital
• D. An HMO

Answer: (D)

A health maintenance organization operates as a prepaid, managed care plan. Members pay a fixed premium, and in return receive a broad set of health services through a network of providers. Care is coordinated, with an emphasis on prevention, and the primary care physician often acts as a gatekeeper who directs referrals. Out-of-network services are typically limited or not covered, reinforcing the prepaid, bundled approach.

This description matches the concept of an HMO, where the prepaid fee equates to the insurance premium and care is designed to be comprehensive within the network. Other options don’t fit this model: a professional practitioner group usually bills per service, a PPO offers more flexibility with less emphasis on prepaid prevention, and a health managed hospital isn’t the standard plan type described.