New York Child Abuse Identification and Reporting Practice Exam

Compared to basic hospital, medical, and surgical policies, which type of insurance provides broader coverage, fewer gaps, and higher policy maximums?

1. Limited medical insurance

2. Supplemental insurance

3. Major medical insurance

4. Short-term health insurance

The correct answer is: Major medical insurance

Major medical insurance is designed to offer comprehensive coverage for a wide range of health services with fewer restrictions and limitations compared to basic hospital, medical, and surgical policies. This type of insurance typically includes extensive benefits such as inpatient and outpatient care, preventive services, emergency room visits, and extended stays, which are essential for addressing more serious medical issues. One of the critical aspects of major medical insurance is that it often features higher policy maximums, meaning that it can cover a larger portion of healthcare costs before the insured individual is required to pay out-of-pocket expenses. This helps to ensure that individuals do not face catastrophic financial burdens from unexpected healthcare needs. In contrast, other types of insurance, like limited medical insurance and short-term health insurance, often provide much narrower coverage and are intended for specific situations or periods, thereby leaving gaps in essential health services. Supplemental insurance typically serves to complement existing health coverage but does not stand alone with the broad protection offered by major medical plans.