An Introduction To Major Medical Insurance Coverage - By: Don Saunders

Major medical insurance cover is the term used to refer to one particular form of what is ordinarily referred to these days as fee-for-service or indemnity health insurance.

Rising health costs these days mean that we are progressively moving away from traditional types of health insurance and the original fee-for-service health insurance plan is now being replaced by a variety of other plans including HMO (health maintenance organization) plans, PPO (preferred provider organization) plans and POS (point of service) plans.

In effect fee-for-service health insurance plans are intended to cover unforeseen medical bills resulting from illness or injury and give plan holders considerable freedom in choosing where treatment is sought and by whom that treatment is provided. Fee-for-service plan holders are also normally responsible for paying for their treatment and then reclaiming the cost from their health insurer.

By contrast newer plans are focused far more on routine health care with the aim of avoiding unnecessary costs by keeping plan holders in good health and spotting problems at a very early stage when they are hopefully simple to treat. These plans simplify administration for plan holders but also take away much of the freedom to decide where and from whom treatment can be received.

The majority of people these days are covered by the newer types of health insurance instead of by traditional fee-for-service plans largely not only because of their reduced cost but also because there is much less administration when it comes times to make a claim on your plan. In addition, a rising number of employers who offer group health insurance plans for their employees are also picking these newer plans. Even so, there is still a significant number of individuals who like the freedom of choice which a fee-for-service plan gives them and it is here where you may like to think about 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 will vary from one insurance company to the next but will commonly cover hospital treatment (plus room and board), some hospital services (such as x-rays and medication), surgery (whether carried out in hospital or at another recognized surgery center) and some doctors visits.

By contrast major medical insurance plans are intended to cover treatment for long-term and high cost injuries and illnesses as well as in and out-patient bills associated with such injuries and illnesses.

Comprehensive cover is simply a plan which includes both basic and major medical coverage.

Not surprisingly major medical insurance plans are a very popular choice as most individuals are quite happy to bear the day to day expense of health care but are concerned about how they would cope in the event of a significant injury or illness which may involve significant medical expense which might drag on for months or even years.

Sadly, the choice and security that is provided by major medical insurance is reflected in the cost of fee-for-service plans generally and thus it is increasingly becoming an option which many individuals would wish to select but one which is simple becoming too expensive.

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