Definition extracted with permission from American Academy of Family Physicians: Family Physicians and Managed Care
HMO's that meet certain federally stipulated provisions aimed at protecting consumers, e.g. providing a broad range of basic health services, assuring financial solvency, and monitoring the quality of care. HMO's must apply to the federal government for qualification. The process is administered by the Office of Prepaid Health Care of the Health Care Financing Administration (HCFA), Department of Health & Human Services (DHHS).