Major Medical Insurance Basics

The main differentiating factor between a normal or mini medical insurance policy and a major medical insurance plan is that a major policy will contain greater amounts of coverage and therefore is also more expensive.

The extra coverage you will receive in the eyes of most insurance professionals is well worth the added cost, especially if you have a history of major medical care needs. To most people, a major medical policy Is well worth it and just makes sense from a financial and peace of mind perspective.

How Major Medical Insurance Plans Are Sold

Usually, a major medical health insurance plan is packaged and sold together with a more comprehensive policy that provides broad-based coverage that includes preventive care protection. This healthcare package will cover you for routine doctor checkups and small incidental visits to the doctor.

It will also cover a person with chronic and costly illnesses such as cancer and diabetes, which can be very expensive.

Major Medical Insurance plans are structured like most health insurance plans. A Major medical deductible will vary widely and this chosen amount will affect the overall cost of the policy. It could be as low as $500 and all the way up to $10,000.

If you are a healthy person who rarely if ever visits the doctor and presumes your good health will continue, it might be smart to get a major medical plan with a high deductible, perhaps $2,000. Choosing a higher deductible will lower your monthly premium payments and help you stay within your budget.

Healthcare Savings Accounts

For a young and healthy non-smoking male who is just 23 years old, with an out-of-pocket deductible of $2,000, he can expect to pay only about $79 a month for major medical coverage. In recent years, many people have been using HSAs or Healthcare Savings accounts. These HSA’s are plans with a high deductible, that fall under IRS guidelines that need to be followed stringently.

The benefit of the HSA is that it allows an individual to save funds in the account, which will be non-taxable and then those funds can be used as needed for medical care costs. Many famous

doctors in recent years such as Dr. Benjamin Carson have lauded the use of private Healthcare accounts as a way for people to take personal responsibility over their medical care costs and more importantly to lower the rising cost of treatments and hospital care.

It is too soon to tell whether major medical plans tied to HSA will catch on and become the standard but it is a viable option worth looking into.

Changes to Major Medical Health Insurance Plans

For decades, almost all major medical plans carried maximum caps that were usually

between $1,000,000 and $5,000,000 of coverage. For most healthy individuals, this was adequate coverage. However, for those with chronic diseases or catastrophic injuries such as a severe spinal rupture that requires around-the-clock care, it simply was not enough.

It often led to a disruption in care and in some cases premature death. Due to the 2010 Affordable Care Act initiated by then-President Obama, caps on policies were banned. Today, almost all of the top healthcare companies have stopped the practice.

In addition, individuals with pre-existing health conditions such as lung cancer can’t be excluded from coverage due to the ACT, more commonly known as Obama Care. This law has helped those most in need of coverage get and keep lifesaving healthcare coverage.

Helpful Tips For Getting the Best Major Medical Insurance Coverage

Always remember to check the prescription drug coverage in your plan as most will carry a different deductible and separate amount of co-insurance. Also, it is smart to check if your plan carries maternity coverage as most do not.

Major Medical Insurance Basics

Major Medical Insurance Basics