Health Insurance Mastery Practice Exam

What type of benefits do major medical insurance policies usually cover?

1. Only emergency services

2. All healthcare services

3. All covered expenses above a deductible

4. Only preventive care services

The correct answer is: All covered expenses above a deductible

Major medical insurance policies are designed to provide extensive coverage for a wide range of health care costs after a policyholder meets their deductible. These policies typically cover most medical expenses such as hospitalization, surgeries, outpatient care, and prescription drugs, among other services. The concept of a deductible is crucial here; it refers to the amount that a policyholder must pay out-of-pocket before the insurance company begins to contribute to the costs of covered healthcare services. Once this deductible is met, the policy typically covers all additional eligible expenses, often with coinsurance or copayment terms that outline the share of costs the policyholder must continue to pay. This comprehensive approach to coverage is what sets major medical insurance apart from other types of policies that may only address specific areas of healthcare or limit benefits to emergency situations or preventive services. Thus, the answer accurately reflects the principle that after meeting the deductible, the policyholder is mostly responsible for only a small portion of the medical expenses that arise.