What fundamental approach do Health Insuring Corporations (HICs) use to provide benefits?

Health Insuring Corporations (HICs) primarily focus on direct provision of healthcare services to their members rather than reimbursing expenses after they have been incurred. This means that HICs typically network with healthcare providers to offer care directly and manage the costs associated with those services upfront. This model allows HICs to maintain greater control over the healthcare services provided and the costs involved, which can lead to more efficient care management and potentially lower overall healthcare costs for subscribers.

This approach contrasts with a reimbursement model, where individuals pay for services upfront and then seek reimbursement from the insurer. Cash payouts to subscribers is also not a practiced model for HICs, as their functionality lies in managing healthcare directly rather than compensating for out-of-pocket costs. Furthermore, investment in third-party insurance companies is unrelated to the core benefits that HICs provide, as their focus is on direct healthcare service provision rather than acting as a financial intermediary.