What Is Major Medical Insurance

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

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

Basically fee-for-service medical insurance plans are designed to provide cover for unexpected medical expenses due to injury or illness and give plan holders a great deal of freedom in selecting where treatment is undertaken and by whom such treatment is provided. Indemnity plan holders are also normally responsible for making payment for their treatment and for subsequently reclaiming the cost from their insurer.

Newer plans by contrast are focused far more upon routine health care with the intention of eliminating unnecessary costs by keeping plan holders in good health and identifying problems at a very early stage when they are hopefully simple to treat. These newer plans ease administration for plan holders but at the same time take away much of the freedom to decide from whom and where treatment may be received.

Most people these days are covered by the newer forms of medical insurance instead of by traditional fee-for-service plans mainly not only because of their reduced cost but also because there is far less administration when it comes times to make a claim on your plan. Additionally, an increasing number of companies who provide group health insurance plan membership to their employees are also opting for these newer plans. Nevertheless, there is still a large number of people who like the freedom of choice which a fee-for-service plan allows them and it is here where you might want to consider major medical insurance.

Indemnity plans provide three forms of coverage; basic health insurance, major medical insurance and comprehensive insurance.

Basic health insurance plans will vary from one medical insurer to the next but will ordinarily cover treatment in hospital (including the cost of room and board), certain hospital services (like x-rays and medication), surgery (whether done in a hospital or 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 expenses associated with these injuries and illnesses.

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 popular choice as the majority of people are only too happy to bear the day to day cost of health care but are worried about what they would do in the event of a significant illness or injury which could entail large medical expense which might drag on for months or even years.

Sadly, the security and choice which is provided by a major medical insurance plan is reflected in the cost of fee-for-service plans in general and so it is becoming more and more of an option which many people would like to select but which is simply too expensive.


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