Knowing the difference between major medical and non-major medical, or basic, medical insurance is essential to choosing the right health care insurance plan. The two types of plans can be coordinated to offer broad-spectrum health care insurance coverage.

Major Medical

Major medical health insurance is designed to cover expensive medical care associated with serious illness and lengthy hospitalization costs.

Basic Medical

Non-major or basic medical insurance is designed to pay for some of the expenses associated with illness and hospitalization. There are usually preset limitations placed on the procedures, number of treatments and/or services covered by the policy.

Coinsurance

Major medical plans generally cover a percentage of hospitalization costs after the insured pays deductibles. Common percentages are 80, 70, or 60 with the insured paying 20, 30, or 40 percent, respectively, in coinsurance plus deductibles. Charges usually covered include fees for physicians, oxygen, surgery, blood, and prosthetic devices.

First-Dollar Coverage

Basic medical insurance commonly provides first-dollar coverage for hospitalization charges for the room and nursing care, as well as expenses like X-rays, medications, certain services and supplies.

Comprehensive Medical

A comprehensive medical plan will combine major and basic medical insurance to provide broad-range coverage for costs associated with a catastrophic illness or accident that requires costly hospitalization and medical care.

Source:

Lawyers.com: Choosing a Health Insurance Plan FAQs: What is the difference between basic and major medical coverage?

HealthInsuranceFinders.com: Individual Health Insurance Plans & Family Health Insurance Quotes: Individual Medical Insurance Overview

FinancialWeb: Major Medical Insurance: Comprehensive Major Medical