Texas General Lines — Life, Accident, Health and HMOHMOsEasy
A health maintenance organization (HMO) operating in Texas must obtain a certificate of authority from which regulatory body?
- ATexas Department of State Health Services (DSHS)
- BTexas Department of Insurance (TDI)
- CTexas Health and Human Services Commission (HHSC)
- DTexas Medical Board (TMB)
Show answer & explanationAnswer & explanation
Correct answer: B. Texas Department of Insurance (TDI)
In Texas, the Texas Department of Insurance (TDI) is responsible for regulating insurance companies and HMOs, including issuing certificates of authority.
Why the other options are wrong
- A. The DSHS focuses on public health, not insurance regulation.
- C. The HHSC oversees health and human services programs, not HMO licensure.
- D. The TMB licenses and regulates physicians, not HMO organizations.
HMO Certificate of Authority
A license issued by a state's insurance department that grants an HMO permission to operate within that state.
- Mandatory for legal operation
- Ensures regulatory compliance
- Issued by state insurance departments
Memory trick: TDI's seal of approval keeps Texas HMOs legit.