Question

A health insuring corporation (HIC) member receives all preventative and routine medical care from the

a. Primary care physician
b. Medical director
c. Routine care physician
d. Provider association

Answer 1

Option A. An HIC member typically receives preventative and routine medical care from a primary care physician. HMOs provide a fixed payment to healthcare providers, which seeks to reduce moral hazard by emphasizing necessary and preventive care rather than a high volume of services.

Step-by-step explanation:

A health insuring corporation (HIC) member receives all preventative and routine medical care primarily from their primary care physician. In a health care system where incentives for healthcare providers are aligned with managed care structures, such as Health Maintenance Organizations (HMOs), providers are given a fixed amount per patient as a means to manage resources and focus on patient health maintenance, rather than providing excessive treatments based on a fee-for-service model.

HMOs aim to reduce moral hazard by encouraging providers to offer care that is necessary and prevention-focused, avoiding unnecessary procedures that may arise out of a system where higher volumes of service lead to higher payments.