Climbing medical costs today mean that we are increasingly moving away from traditional types of medical insurance and the original fee-for-service medical insurance plan is now 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 effect fee-for-service medical insurance plans are intended to provide cover for unforeseen medical bills resulting from injury or illness and give plan holders a great deal of freedom in selecting where treatment is taken and by whom such treatment is given. Indemnity plan holders are also commonly responsible for paying for their treatment and for subsequently claiming back the cost from their insurer.
By contrast newer plans focus far more on routine medical care with the goal 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 ease administration for plan holders but also take away a lot of the freedom to decide where and from whom treatment is to be received.
Most people nowadays will be covered by the newer types of medical insurance instead of by traditional fee-for-service plans essentially not only because of their reasonable cost but also because there is a lot less administration when it comes to making claims under your plan. Additionally, a rising number of companies who offer group health insurance plan membership to their employees are also opting for these newer types of plan. Nevertheless, there is still a substantial number of individuals who want the freedom of choice which a fee-for-service plan gives them and it is here where you may want to look at major medical insurance.
Indemnity plans provide three types of coverage; basic health insurance, major medical insurance and comprehensive insurance.
Basic health insurance plans vary from one insurance company to the next but will commonly cover treatment in hospital (plus room and board), some hospital services (such as x-rays and medicine), surgery (whether done in a hospital or another recognized surgical center) and some doctors visits.
Major medical insurance plans by contrast are intended to cover the treatment of long-term and high cost illnesses and injuries and both in and out-patient bills associated with these illnesses and injuries.
Comprehensive insurance cover is simply a plan which encompasses both basic and major medical coverage.
Not surprisingly major medical insurance plans are a popular choice as many individuals are only too happy to bear the day to day expense of medical care but are worried about what they would do in the event of a significant illness or injury which could entail considerable medical expense which might drag on for months or even years.
Regrettably, the security and choice provided by a major medical insurance plan is reflected in the cost of fee-for-service plans generally and thus it is becoming more and more of an option which many individuals would like to choose but one which is simple becoming too expensive.
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