What is the purpose of major medical insurance?
Major medical insurance, often called comprehensive medical insurance, is designed to provide individuals with coverage for a wide range of medical expenses, including hospital stays, doctor visits, prescription drugs, and other medical services. It typically provides coverage beyond what is offered by basic health insurance plans, and it can help to protect people from the financial impact of unexpected medical bills.
Key features of major medical insurance usually include:
1. Comprehensive Coverage: Major medical insurance typically covers a broad spectrum of medical expenses, including inpatient and outpatient hospital services, physician fees, diagnostic tests, preventive care, emergency services, and more. It is designed to provide comprehensive coverage for people with various healthcare needs.
2. Flexibility: Major medical insurance plans often offer flexibility in terms of choosing healthcare providers and facilities. Individuals may have the option to select from a network of providers or use out-of-network providers with different levels of cost-sharing.
3. Deductible and Coinsurance: Many major medical insurance plans have a deductible, which is the amount the policyholder must pay for covered expenses before the insurance starts covering them. Once the deductible is met, the insurance plan typically covers a percentage of the remaining expenses, with the policyholder paying a coinsurance amount for each covered service.
4. Copayments: In addition to deductibles and coinsurance, some major medical insurance plans also have copayments, which are fixed amounts the policyholder pays for certain services, such as office visits or prescription drugs.
5. Out-of-Pocket Maximum: Major medical insurance plans usually have an out-of-pocket maximum, which is the total amount the policyholder is responsible for paying (including deductibles, coinsurance, and copayments) before the insurance company begins to cover expenses at 100%. This provides a limit to the financial risk associated with medical expenses.
By offering comprehensive coverage, major medical insurance aims to provide individuals with the financial protection they need to access essential healthcare services and treatments. It helps to cover the costs associated with medical care, including both routine and unexpected expenses, providing individuals with peace of mind and facilitating better healthcare outcomes.