What legislative act supported the development of health maintenance organizations (HMOs) through federal grants?

The Health Maintenance Organization Act of 1973 is pivotal in the history of U.S. healthcare as it specifically aimed to promote the establishment and growth of health maintenance organizations (HMOs) through federal grants and other supportive measures. This legislation recognized the necessity of alternative healthcare delivery models, emphasizing preventive care and the management of healthcare costs through a coordinated system. By providing federal funding, the act incentivized the development of HMOs, encouraging both public and private organizations to form these entities which would offer comprehensive health services to enrolled members. This legislation laid the groundwork for the expansion of managed care in the United States, making it a significant milestone in healthcare reform during that period.