Major Health Insurance

Major Health Insurance
by Donald Saunders

Major health insurance is the name given to one particular type of what is normally referred to nowadays as indemnity or fee-for-service health insurance.

Climbing medical costs in recent years mean that we are gradually moving away from traditional types of health insurance and the original fee-for-service health insurance plan is rapidly 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.

In essence fee-for-service health insurance plans are designed to cover unanticipated medical bills due to injury and illness and give plan holders significant freedom in choosing where treatment is undertaken and by whom that treatment is given. Fee-for-service plan holders are also frequently responsible for making payment for their treatment and subsequently claiming back the cost from their insurer.

The newer plans by contrast focus far more on routine medical care with the intention of avoiding unnecessary costs by keeping plan holders in good health and spotting conditions at a very early stage when they are hopefully simple to deal with. These plans simplify administration for plan holders but at the same time take away much of the freedom to decide where and from whom treatment is to be received.

The majority of people nowadays are covered by the newer types of health insurance rather than by traditional fee-for-service plans largely not only because of their lower cost but also because there is a lot less administration when it comes times to make a claim against your plan. Additionally, a rising number of employers who provide group health insurance plan membership to their employees are also opting for these newer types of plan. All the same, there is still a substantial number of individuals who prefer the freedom of choice that an indemnity plan allows them and it is here that you may wish to consider major health insurance coverage.

Fee-for-service plans provide three types of coverage; basic health insurance, major health insurance and comprehensive insurance.

Basic health insurance plans will vary from one health insurer to the next but will commonly cover treatment in hospital (plus the cost of room and board), some hospital services (like x-rays and medicine), surgery (whether done in a hospital or another recognized surgery center) and some doctors visits.

Major health insurance plans by contrast are designed to cover treatment for long-term and high cost illnesses and injuries as well as in and out-patient bills associated with these illnesses and injuries.

Finally, comprehensive cover is merely a plan that encompasses both basic and major medical coverage.

Perhaps not surprisingly major health insurance is a popular choice as most individuals are quite happy to bear the day to day cost of medical care but are worried about what they would do in the event of a significant injury or illness which could involve substantial medical expense that might drag on for weeks, months or years.

Sadly, the choice and security which is provided by a major health insurance plan is reflected in the cost of fee-for-service plans in general and so it is increasingly becoming an option that a lot of individuals would wish to select but that is simple becoming too expensive.