Observations and Findings on Ten Federally Qualified HMOs

Pursuant to the Health Maintenance Organization (HMO) Act, GAO reviewed 14 HMOs, and this report summarizes the observations made concerning 10 of these HMOs in connection with their compliance with organizational and operational requirements. The HMO Act required that HMOs be organized as either a staff model HMO, a group practice model, or an individual practice association model HMO; a combination of more than one of the models, however, could not be used.