Several Types of Traditional Virginia Health Insurance Policies

Basic health insurance (hospital/surgical) policies provide benefits related to hospitalization costs and associated medical expenses of an insured. Typically, these benefits include room and board and other hospital services such as x-ray and lab expenses and operating room use.

Hospital/Surgical policies may provide "first-dollar" coverage. This means that there is no deductible for the policyholder to pay, and, therefore, no initial out-of-pocket expense. Although there may be little out-of-pocket expense for the policyholder in the event of a short-term hospitalization or routine surgery, lengthy hospitalizations and costly medical care are usually not covered by these policies. As a result, unless you have other insurance, you may incur sizable expenses that are difficult to meet.

Major medical insurance plans provide coverage for medical services in and out of the hospital. Major medical plans may also cover the costs of blood transfusions, prescription drugs, and out-of-hospital costs, such as doctor visits.

Major medical policies typically pay a percentage of covered expenses and allowable charges after you pay an annual deductible. You then pay the remaining percentage of covered expenses as coinsurance.

Many companies offer coverage that combine Basic and Major Medical Plans into one policy. These policies are often called Comprehensive policies. Major Medical and Comprehensive policies typically contain lifetime limits on benefits to be paid under the policy. It is important to make sure a lifetime amount is adequate to cover losses in the event of catastrophic illness or injury.

Hospital confinement indemnity insurance provides a predetermined flat benefit amount for each day, week, or month an insured is hospitalized up to a designated number of days.

Hospital confinement indemnity policies are available directly from insurance companies, by mail, or through insurance agents. As with any product that offers many choices, these policies require care in matching the plan to your needs. Some policies contain limitations on pre-existing conditions (however, limitations for pre-existing conditions may be reduced in certain circumstances). Others contain an elimination period; this means that benefits will not be paid until after you have been hospitalized for a specified number of days. When you apply for the policy, you may be allowed to choose from two or three elimination periods, with different premiums for each. Although you can hold premiums down by choosing a longer elimination period, you should bear in mind that most patients are hospitalized for relatively brief periods of time.

If you do buy a hospital confinement indemnity policy, with fixed benefit dollars, consider a periodic review and increase of the daily benefits to keep pace with rising health care costs.