Major medical insurance is a type of health insurance plan that provides coverage for most types of medical expenses that are incurred by a policyholder. They typically offer a broader, more complete range of coverage than traditional health insurance policies. This means that these plans usually provide for higher individual policy coverage limits as well as larger overall maximum policy limits.
Major medical insurance plans can be divided into two primary categories:
Comprehensive Major Medical Insurance: With comprehensive major medical insurance, basic health insurance coverage, along with nearly any other type of medical expense will be coordinated into one overall comprehensive plan. In these plans, benefit payments will begin after a deductible is satisfied – although some plans have a zero deductible.
Supplemental Major Medical Insurance: With a supplemental major medical plan, coverage will begin with a basic traditional policy that will pay out benefits initially. Then, coverage for major medical expenses is added to cover the costs that are not covered by the basic plan. Typically, these types of plans will include coverage for hospitalization and surgery along with an additional policy that covers a wider range of other types of medical expenses.
Regardless of whether a major medical insurance policy is considered to be comprehensive or supplemental, most will cover a wide range of benefits, including hospital inpatient room and board, surgical services, physicians’ services, outpatient services, X-rays, and other types of tests.