Kinds of Medical Coverage

Many different kinds of medical insurance plans are available to provide coverage at various prices. Some insurance plans cover all visits to your doctor, but some will only cover your expenses if you have to go to the hospital. The amount of coverage you require is a question only you can answer. Typically, young healthy adults can get by with a basic plan that covers major expenses. If you are older or have a medical condition that requires frequent care, you may want to choose a more extensive policy.

Major Medical

• Major medical insurance is the most expensive insurance plan you can have. These plans cover all of your medical expenses including prescription needs, doctor visits and hospitalization. They also cover nursing home expenses and home health services. Typically, you will have to pay a yearly out-of-pocket deductible and a co-payment for any services. The amount of your premium -- monthly payment for coverage -- varies depending on the deductible you choose. If you choose a high deductible, you will pay less monthly than if you choose a low- or no-deductible plan.

Short-Term Major Medical

• Sometimes referred to as a temporary policy, short-term major medical policies typically cover policyholders for six months or less. Consumers may choose a temporary policy if they are changing jobs and decide not to participate in their previous employer's Consolidated Omnibus Budget Reconciliation Act plan. COBRA allows an employee to remain on his employer's plan for up to 18 months if he chooses to participate. Coverage for pre-existing conditions is not available with short-term policies and the deductibles are typically high. Short-term policy premiums are generally lower than regular major medical policies.

Hospitalization

• Hospitalization plans cover a policyholder's costs only when she is in the hospital. A consumer who cannot afford major medical coverage or who needs basic coverage for longer than a short-term plan allows can find that a hospitalization plan meets her needs. Hospitalization-only plans are typically the least expensive plan available, according to CalHealth.

Indemnity Policies

• Indemnity policies pay money to you if you are in the hospital or undergo surgery. While you can pay for a policy that covers specific events, such as hospitalization or surgery, plans are available that cover a combination of service that includes hospital, medical and surgical events. An indemnity policy will not pay enough to cover your medical expenses, but can compensate you for the time you spend seeing to your medical needs.

Specific Disease Policies

• These policies provide limited benefits only for certain diseases or conditions. If you choose a cancer, heart or stroke policy, the insurance will pay you if you have a diagnosis of the condition or disease. These policies will not pay enough to reimburse your medical providers for your care, but will supplement your income while you receive treatment.

Supplemental Policies

• Supplemental policies cover expenses that your primary insurance does not pay. They will cover your co-pays and some cover your deductible. A supplemental policy will not reimburse major expenses and should not be your only insurance policy. Supplemental polices are cheaper than most other policies because of the limited benefits they provide.