Final answer:
Health maintenance organizations (HMOs) provide all preventative and routine medical care to members of a health insuring corporation (HIC), being reimbursed with a fixed amount per patient to manage resources and reduce moral hazard.
Step-by-step explanation:
All preventative and routine medical care given to a health insuring corporation (HIC) member is typically provided by health maintenance organizations (HMOs). In an HMO, healthcare providers are paid a fixed amount per patient rather than on a fee-for-service basis. This fixed payment system changes the incentives for providers, encouraging them to focus on preventive care and manage resources efficiently to reduce the moral hazard problem, which occurs when insured patients consume more healthcare services because they don't bear the full cost of those services. However, to prevent under-provision of care that could result in higher costs later, providers may also receive additional payments for managing certain complex health conditions.