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Question 14: The Bruin Health Plan is a Social Health Maintenance Organization (SHMO). As an SHMO, Bruin:
A. Must provide Medicare participants with standard HMO benefits, as well as with limited long-term
care benefits
B. Does not need as great a variety of provider types or as complex a reimbursement method as does
a traditional HMO
C. Receives a payment that is based on reasonable costs and reasonable charges
D. Most likely provides fewer supportive services than does a traditional HMO, because one of Bruin's
goals is to minimize the use of community-based care
Correct Answer: A
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