Major medical insurance coverage is the name given to one particular type of what is ordinarily referred to today as indemnity or fee-for-service health insurance.
Escalating health costs in recent years mean that we are increasingly moving away from traditional forms of medical insurance and the original indemnity medical insurance plan is rapidly being replaced by various other plans including HMO (health maintenance organization) plans, PPO (preferred provider organization) plans and POS (point of service) plans.
Essentially indemnity medical insurance plans are designed to provide cover for unexpected medical costs due to illness or injury and give policy holders extensive freedom in deciding where treatment is undertaken and by whom such treatment is given. Fee-for-service policy holders are also usually responsible for paying for their treatment and for subsequently claiming back the cost from their health insurer.
By contrast newer plans are focused much more upon routine health care with the intention of avoiding unnecessary costs by keeping policy holders in good health and spotting problems at a very early stage when they are hopefully simple to treat. These plans ease administration for policy holders but at the same time take away a lot of the freedom to decide from whom and where treatment can be received.
Most people today are covered by the newer forms of medical insurance rather than by traditional indemnity plans essentially not only because of their reduced cost but also because there is a lot less administration when it comes times to make a claim under your policy. In addition, a growing number of companies who provide group health insurance plan membership to their employees are also choosing these newer types of plan. Nonetheless, there is still a significant number of people who want the freedom of choice that an indemnity policy gives them and it is here that you may wish to look at major medical insurance.
Fee-for-service plans provide three forms of coverage; basic health insurance, major medical insurance and comprehensive insurance.
Basic health insurance plans vary from one health insurer to the next but will commonly cover treatment in hospital (plus room and board), certain hospital services (such as x-rays and medicine), surgery (whether carried out in a hospital or at another recognized surgery center) and certain doctors visits.
Major medical insurance plans by contrast are designed to cover the treatment of high cost and long-term injuries and illnesses as well as in and out-patient costs associated with such injuries and illnesses.
Finally, comprehensive insurance cover is merely a policy that encompasses both basic and major medical coverage.
Perhaps not surprisingly major medical insurance is a popular choice as most people are reasonably happy to meet the day to day expense of health care but are worried about how they would cope in the event of a major accident or illness which might entail significant medical expense that could drag on for weeks, months or years.
Sadly, the choice and security provided by major medical insurance is reflected in the cost of indemnity plans generally and so it is becoming more and more of an option that many people would wish to choose but that is simply too expensive.
MedicalHealthInsuranceToday.com provides information on all aspects of health insurance including affordable health insurance and major medical insurance coverage
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