Most health insurance plans sold today are major medical plans but there are a few hospital and surgical health insurance plans on the market. Hospital and surgical health plans often aren't as comprehensive as a major medical plan but frequently are less expensive, so there is still a market for the plan. The plan, however, often is not as comprehensive as major medical health insurance
History
Health insurance wasn't important until the twentieth century. Before that, there was limited medical technology to warrant health policies. Most people took care of sick loved ones in the home. The exception was a plan created during the Civil War. Since railroads and steamboats were new and still not trusted by many, companies developed policies that covered accidents on either form of transportation. As medicine became more sophisticated, medical costs increased. Insurance companies realized that health plans might be profitable and created the forerunner of today's health plans.
Function
Major medical policies offer comprehensive coverage but hospital and surgical health insurance plans do not. These plans focus on the expenses incurred when visiting a hospital. While the policy was adequate in an era where the biggest medical expenses were incurred from a hospital stay or surgery, today with expensive treatment and tests, many of the provisions are antiquated.
Coverage
The coverage in a hospital and surgical plan has limits. Normally it only covers the hospital expenses, outpatient services, in-hospital doctor visits and surgical expenses.
Schedules
Most hospital and surgical policies have a list of maximum amounts paid for each type of service. Only the services on the schedule receive coverage. Those that don't have a schedule use the reasonable and customary charges for those specific treatments. Some policies have a deductible amount for each type of service besides the policy deductible and coinsurance. There are often limitations on the number of in-hospital doctor visits that the policy pays.
Limitations
Since the coverage tends to be only for named treatment, it's far more rigid and limited. Newer treatments or alternative treatments don't receive payment by these policies. Doctor's office visits, prescription drugs and payment for illnesses that require extensive treatment but no hospital stay often don't have adequate coverage.
Maximum
The maximum amount many of the hospital and surgical health policies pay per individual lifetime, per disease or policy aggregate often isn't adequate for today's rising health costs.
Expert Insight
Consider alternatives to this type of policy if expense is a factor. Managed care policies, ones that use a network of doctors, are often just as inexpensive. A high deductible policy combined with a Health Savings Account provides wonderful coverage for healthy people. Before you sign up always check the provisions of the policy. Some newer hospital and surgical policies may contain more liberal wording.
Health insurance wasn't important until the twentieth century. Before that, there was limited medical technology to warrant health policies. Most people took care of sick loved ones in the home. The exception was a plan created during the Civil War. Since railroads and steamboats were new and still not trusted by many, companies developed policies that covered accidents on either form of transportation. As medicine became more sophisticated, medical costs increased. Insurance companies realized that health plans might be profitable and created the forerunner of today's health plans.
Function
Major medical policies offer comprehensive coverage but hospital and surgical health insurance plans do not. These plans focus on the expenses incurred when visiting a hospital. While the policy was adequate in an era where the biggest medical expenses were incurred from a hospital stay or surgery, today with expensive treatment and tests, many of the provisions are antiquated.
Coverage
The coverage in a hospital and surgical plan has limits. Normally it only covers the hospital expenses, outpatient services, in-hospital doctor visits and surgical expenses.
Schedules
Most hospital and surgical policies have a list of maximum amounts paid for each type of service. Only the services on the schedule receive coverage. Those that don't have a schedule use the reasonable and customary charges for those specific treatments. Some policies have a deductible amount for each type of service besides the policy deductible and coinsurance. There are often limitations on the number of in-hospital doctor visits that the policy pays.
Limitations
Since the coverage tends to be only for named treatment, it's far more rigid and limited. Newer treatments or alternative treatments don't receive payment by these policies. Doctor's office visits, prescription drugs and payment for illnesses that require extensive treatment but no hospital stay often don't have adequate coverage.
Maximum
The maximum amount many of the hospital and surgical health policies pay per individual lifetime, per disease or policy aggregate often isn't adequate for today's rising health costs.
Expert Insight
Consider alternatives to this type of policy if expense is a factor. Managed care policies, ones that use a network of doctors, are often just as inexpensive. A high deductible policy combined with a Health Savings Account provides wonderful coverage for healthy people. Before you sign up always check the provisions of the policy. Some newer hospital and surgical policies may contain more liberal wording.
