How often is a complete examination of an HMO's affairs conducted?

The correct answer is that a complete examination of a Health Maintenance Organization (HMO)'s affairs is conducted once every five years. This interval is established by regulatory requirements to ensure that HMOs operate in compliance with state laws and regulations, maintain financial stability, and provide required services to their members. This periodic examination is crucial not only for the protection of consumers but also for ensuring that the organization is adhering to operational standards and practices that serve the public interest.

The five-year period allows sufficient time for regulators to assess the HMO's performance, financial health, and compliance with various statutes and regulations. By conducting these examinations every five years, regulators can effectively monitor the activities and governance of these organizations, while still allowing for the dynamic nature of healthcare delivery, which may require adjustments in oversight frequency based on specific circumstances.

Other options suggest different timeframes for examinations, such as annually, once every three years, or once every ten years, which do not align with the established regulations for HMO oversight. Annual examinations may be too frequent for routine checks, while longer intervals like ten years may not allow for timely interventions if issues arise. By adhering to a five-year schedule, regulators can strike a balance between thorough oversight and operational efficiency for HMOs.