Who provides benefits on a service basis in health insurance?

In health insurance, service providers are the entities that deliver medical services and treatments to patients. These can include hospitals, doctors, clinics, and other healthcare professionals who directly render care to individuals requiring medical attention. The term "service basis" refers to the approach in which benefits are provided based on the actual services rendered; for instance, an insured individual visits a healthcare provider, receives treatment, and then the insurance pays for those specific services according to the coverage details.

While insurance brokers assist clients in selecting and purchasing insurance policies and employers might provide health coverage as part of employee benefits, they do not provide the actual medical services themselves. Additionally, third-party administrators handle claims processing and administrative tasks for health plans but do not deliver healthcare services. Hence, recognizing service providers as the entities that offer benefits on a service basis is integral to understanding the functioning of health insurance.