Why won HMOs work with retainer-based practices?
HMOs consider the small advanced (or capitated) payment to the doctor enough to “retain” the services of that doctor for each of their enrolled patients. They count on many of their patients not having to see the doctor very often, and only a few having to see the doctor frequently. The insurance company will not let the doctor collect more than the visit co-pay from the patient. This usually amounts to less than $200 a year for each patient, which is less than what an annual physical examination service costs the doctor to provide.
