Major Medical Insurance
Comprehensive health insurance coverage designed to pay for significant medical expenses such as hospitalizations, surgeries, and serious illnesses. It typically includes high benefit limits and covers a wide range of medical services, often with deductibles and coinsurance.
Example
“After her cancer diagnosis, Rebecca was grateful for her major medical insurance, which covered $150,000 in treatment costs with only a $5,000 out-of-pocket maximum.”
Memory Tip
Major Medical = 'Massive Medical Money Manager' - handles the big, expensive medical bills you can't afford alone.
Why It Matters
Major medical insurance protects against financial ruin from serious health conditions that can cost hundreds of thousands of dollars. Without it, a single major illness or injury could bankrupt families and prevent access to necessary life-saving treatments.
Common Misconception
Some people think major medical insurance only covers catastrophic events and won't help with routine care. Modern major medical plans typically include preventive care, prescription drugs, and regular medical services, not just emergency situations, especially under ACA requirements.
In Practice
John's major medical insurance has a $2,500 deductible, 80/20 coinsurance, and $8,000 out-of-pocket maximum. When he needed emergency surgery costing $75,000, he paid the $2,500 deductible plus 20% of the remaining $72,500 ($14,500) but his coinsurance stopped at $5,500 due to the out-of-pocket maximum. His total cost was $8,000 instead of $75,000, saving him $67,000.
Etymology
Combines 'major' from Latin 'maior' meaning greater, 'medical' from Latin 'medicus' meaning healing, and 'insurance' from Latin 'securus' meaning secure.
Common Misspellings
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Related Terms
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