Major medical insurance usually has a deductible. It also usually has an out-of-pocket maximum. You usually pay a percentage of your bill until you reach this maximum.
A basic major medical policy will cover doctors' visits, hospitalization, outpatient care and emergency room visits. Preventative care is also covered.
Prescription drugs, extended care and home health care may also be covered by some major medical insurance programs.
Other benefits that may be paid for by a major medical policy include dental and vision, care by a specialist, and mental health and alcohol/drug treatments. If covered, the mental and alcohol/drug treatments will usually have a smaller lifetime maximum.
While you may have to pay a deductible and a percentage of your bill until you reach your out-of-pocket total, major medical insurance protects you from paying fully for a catastrophic illness.
Major medical insurance is insurance that covers a broad range of illnesses and disorders. It usually has a high maximum amount of coverage, such as $2 million for a lifetime.