An Introduction to Major Medical Insurance

Major medical insurance cover is the term used to refer to one particular form of what is generally referred to these days as fee-for-service or indemnity health insurance. Rising medical costs today mean that we are progressively moving away from traditional forms of health insurance and the original indemnity health insurance plan is rapidly being replaced by a variety of other plans including health maintenance organization (HMO) plans, preferred provider organization (PPO) plans and point of service (POS) plans.

Basically indemnity health insurance plans are designed to cover unforeseen medical costs resulting from injury and illness and give plan holders considerable freedom in choosing where treatment is sought and by whom that treatment is given. Fee-for-service plan holders are also frequently responsible for paying for treatment and then claiming back the cost from their insurer. By contrast newer plans are focused far more upon routine medical care with the goal of avoiding unnecessary costs by keeping plan holders in good health and spotting problems at a very early stage when they are hopefully easy to treat. These newer plans ease administration for plan holders but also remove a lot of the freedom to decide from whom and where treatment may be received.

The majority of people these days are covered by the newer forms of health insurance instead of by traditional indemnity plans primarily not only because of their lower cost but also because there is a lot less administration when it comes to making claims under your plan. Additionally, an increasing number of employers who offer group health insurance plans for their employees are also selecting these newer plans. All the same, there is still a substantial number of people who favor the freedom of choice which a fee-for-service plan allows them and it is here where you may wish to consider major medical insurance.

Fee-for-service plans provide three types of coverage; basic health insurance, major medical insurance and comprehensive insurance. Basic health insurance plans vary from one medical insurer to the next but will commonly cover treatment in hospital (plus room and board), certain hospital services (like x-rays and medicine), surgery (whether performed in a hospital or another recognized surgery center) and certain doctors visits.

By contrast major medical insurance plans are designed to cover the treatment of high cost and long-term injuries and illnesses and both in and out-patient costs associated with such injuries and illnesses. Finally, comprehensive insurance cover is merely 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 quite happy to pay the day to day expense of medical care but are concerned about how they would cope in the event of a significant accident or illness which may involve considerable medical expense which might drag on for weeks, months or even years. Sadly, the choice and security which is provided by major medical insurance is reflected in the cost of indemnity plans in general and so it is becoming more and more of an option which a lot of people would like to choose but one which is simply too expensive.

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