How do Health Insuring Corporations (HICs) differ from standard health plans?

Health Insuring Corporations (HICs) differ from standard health plans primarily due to the additional regulations they face. HICs are specifically designed to provide managed care services, which involves stricter compliance with state-specific laws intended to ensure consumer protection and quality of care.

These additional regulations often include requirements for how services are delivered, the establishment of provider networks, and mandates regarding member education and outreach. The purpose of these regulations is to create a more structured and accountable system that emphasizes preventive care, cost control, and comprehensive service delivery.

In contrast, standard health plans may operate under different regulatory frameworks that do not impose the same rigorous standards related to network management and member services. Additionally, the nature of health plans can lead to variability in the degree of regulatory oversight, but HICs are specifically governed under laws that emphasize consumer protection in a managed care context.