What Do We Mean By Major Medical Insurance Coverage?

Major medical insurance is the term used to refer to one particular type of what is generally referred to today as fee-for-service or indemnity health insurance.Increasing medical costs in recent years mean that we are gradually moving away from traditional forms of medical insurance and the original indemnity medical insurance plan is now being replaced by a number of other plans including health maintenance organization (HMO) plans, preferred provider organization (PPO) plans and point of service (POS) plans.In essence indemnity medical insurance plans are designed to cover unanticipated medical costs due to illness or injury and give plan holders a great deal of freedom in picking where treatment is undertaken and by whom such treatment is given. Indemnity plan holders are also usually responsible for making payment for treatment and for then reclaiming the cost from their insurer.Newer plans by contrast focus much more upon routine medical care with the objective of avoiding unnecessary costs by keeping plan holders in good health and identifying conditions at an early stage when they are hopefully easy to deal with. These newer plans ease administration for plan holders but at the same time remove a lot of the freedom to decide from whom and where treatment can be received.Most people today will be covered by the newer forms of medical insurance rather than by traditional indemnity plans mainly not only because of their reasonable cost but also because there is far less administration when it comes to making claims on your plan. In addition, an increasing number of employers who provide group health insurance plans for their employees are also choosing these newer types of plan. Nonetheless, there is still a considerable number of people who favor the freedom of choice which a fee-for-service plan allows them and it is here that you may wish to think about major medical insurance coverage.Indemnity plans provide three types of coverage; basic health insurance, major medical insurance and comprehensive insurance.Basic health insurance plans vary from one insurer to the next but will normally cover hospital treatment (plus room and board), certain hospital services (like x-rays and medicine), surgery (whether performed in a hospital or another suitable surgical center) and certain doctors visits.Major medical insurance plans by contrast are designed to cover treatment for high cost and long-term illnesses and injuries as well as in and out-patient costs associated with these illnesses and injuries.Finally, comprehensive insurance cover is simply a plan which encompasses both basic and major medical coverage.Perhaps not surprisingly major medical insurance plans are a very popular choice as the majority of people are reasonably happy to pay the day to day expense of medical care but are concerned about what they would do in the event of a major illness or injury which may involve substantial medical expense which could drag on for weeks, months or years.Unfortunately, the security and choice that is provided by a major medical insurance plan is reflected in the cost of indemnity plans in general and thus it is becoming more and more of an option which a lot of people would like to choose but one which is just too expensive.