Major medical insurance cover is the term used to refer to one particular form of what is commonly referred to nowadays as indemnity or fee-for-service health insurance.
Growing health costs over the past few years mean that we are increasingly moving away from traditional types of medical insurance and the original indemnity medical 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.
Essentially indemnity medical insurance plans are intended to provide cover for unexpected medical expenses due to injury or illness and give plan holders a great deal of freedom in picking where treatment is sought and by whom that treatment is provided. Indemnity plan holders are also normally responsible for making payment for their treatment and for then claiming back the cost from their health insurer.
By contrast newer plans focus much more upon routine health care with the goal of avoiding unnecessary costs by keeping plan holders in good health and spotting conditions at a very early stage when they are hopefully easy to treat. These plans ease administration for plan holders but also remove a lot of the freedom to decide from whom and where treatment can be received.
Most people nowadays will be covered by the newer types of medical insurance rather than by traditional indemnity plans primarily not only because of their reasonable cost but also because there is much less administration when it comes to making claims against your plan. In addition, an increasing number of employers who offer group health insurance plans for their employees are also picking these newer plans. All the same, there is still a substantial number of individuals who like the freedom of choice that an indemnity plan allows them and it is here where you might like to consider major medical insurance coverage.
Indemnity plans provide three forms of coverage; basic health insurance, major medical insurance and comprehensive insurance.
Basic health insurance plans will vary from one health insurer to the next but will ordinarily cover hospital treatment (including room and board), certain hospital services (such as x-rays and medicine), surgery (whether done in a hospital or at another suitable surgical center) and certain doctors visits.
By contrast major medical insurance plans are intended to cover the treatment of long-term and high cost illnesses and injuries as well as in and out-patient expenses associated with such illnesses and injuries.
Comprehensive insurance cover is simply a plan that encompasses both basic and major medical coverage.
Not surprisingly major medical insurance plans are a popular choice as the majority of individuals are reasonably happy to bear the day to day expense of health care but are worried about how they would cope in the event of a major injury or illness which could involve large medical expense that might drag on for weeks, months or years.
Unfortunately, the security and choice which is provided by a major medical insurance plan is reflected in the cost of indemnity plans generally and thus it is increasingly becoming an option that a lot of individuals would wish to choose but one that is just too expensive.