Health care reform legislation has made understanding coverage more difficult in many cases. Where four parts once existed, only one of them being a separate major medical plan, there are now a large number of supplements and major insurance alternatives. More options often means difficulty in knowing whether the chosen plan is actually the best for your circumstance.
For older or disabled Americans, it is still necessary to choose between traditional Medicare supplements and major medical insurance alternatives. Almost everyone else must select between major medical insurance and other, cheaper plans designed to cover specific needs. If you are relatively young and healthy, you can save money by carrying only major medical coverage.

Covered Medical Needs

Preventive plans, a type of service-specific coverage, help with the cost of check-ups and diagnostic procedures. Low premiums are appealing for those in great health. No matter your current health, the reality is that health disasters occur sometimes without warning. Comprehensive policies solve the problem by leaving far fewer gaps.

Individuals may choose between comprehensive major medical insurance or a combination of a service-specific plan and supplemental major medical insurance. Healthy individuals could save significantly with the latter option. All plans have several features that affect the cost of premiums.

Comprehensive Versus Supplemental

A comprehensive plan is just what it sounds like. No other insurance is needed for protection. As stand-alone coverage, these plans have the advantage of requiring only one premium and a simplified claims process. They are more expensive with an exception for healthy customers. Comprehensive providers requiring medical exams to initiate premiums are sometimes less expensive than alternatives. These plans will be more likely to reward your low-risk status as a young and healthy person.

Supplemental plans offer the same major medical coverage, but they are a secondary resource. Anything that the primary policy can cover, it will be expected to cover first. The premiums here tend to be significantly lower for low-risk people. Primary preventive coverage coupled with supplemental major insurance is a common choice for young, healthy individuals. Supplemental and comprehensive premiums also vary based on size of the deductible and other shared costs.

Deductible Plans and First-dollar Coverage

First-dollar coverage is almost exclusively found with comprehensive plans, and it is the most expensive. The individual may be responsible for partial payments, but insurance kicks in with the first medical bill. Deductible plans are the most common, and a higher deductible means a lower premium. A deductible set at $200 for an individual means the person must pay that much in bills before insurance contributes to costs.

Co-insurance and Co-payment

Co-payments are a fixed dollar amount the individual must pay on routine costs, like an appointment or prescription. Co-insurance is set at a percentage of specific or overall costs. Higher contributions from you will reduce the cost of premiums and increase your liability for unanticipated expenses. You may be eligible to cover out-of-pocket expenses tax-free through a health savings account.

The benefit of major medical insurance is protection against unanticipated costs. Because the young and healthy have fewer health risks and problems, major medical is likely to cover their basic needs while providing a "just in case" back up. These features make major medical a great choice as the sole health insurance for young, health adults to carry.

Frank Lippert blogs about choices in health care, including major medical insurance. If you are debating about which form of heath care to choose, you might consider reading these reviews of private medical insurance companies.