Health maintenance organization that applies and meets the requirements of the Centers for Medicare and Medicaid Services (CMS) guidelines for Medicare reimbursement as set forth in the Health Maintenance Organization Act of 1973. Staff, group, and independent practice association (IPA) model HMOs are eligible for federal qualification under the federal HMO law. Network model HMOs are usually not eligible for qualification. FQHMOs are eligible for selection by a company of more than 25 employees and the company must offer two types (i.e., one IPA and one group or staff model HMO). This is known as the “dual choice mandate” of the HMO law. FQHMOs are eligible to contract with Medicare to be reimbursed on a per capita basis for an amount equal to 95% of its estimated cost for total health care services to that person during the year.