Individual medical insurance provides benefits for health care. Prescription assistance programs may be included in some policies. Various policies may provide for payment of health bills incurred on a reimbursement basis by paying benefits to the policy owner, payment on a service basis by paying those who provide the services directly, or payment of an indemnity by paying a established sum regardless of the total charged for health expenses. Medical expense or hospitalization coverage may be issued on an individual or group basis. Many of these plans will provide prescription help.

While there are countless types of benefits to be had, private medical expense insurance might by and large be categorized as basic health expense coverage, major medical coverage, comprehensive medical coverage, and special plans. These plans should cover prescriptions because prescription drugs help so many patients. Nearly all of these programs have essentially been replaced by managed care plans and are no longer offered as stand-alone plans. These types of plans have been modified and replaced in answer to changes in the health care field relative to cost containment and market competition.

Basic insurance provided by a personal medical expense policy includes hospital expense, surgical expense and medical expense. These 3 basics may well be issued as one or individually. Normally this is issued as "first dollar" coverage, which means it does not include a deductible.

Like the name indicates, hospital expense medical insurance offers benefits for expenses incurred during hospitalization. Hospital indemnities are ordinarily classified into 2 general categories:

• Room and board, as well as nursing care and special diets

• Miscellaneous medical expenses, as well as x-rays, laboratory fees, medications, medical supplies, and operating and treatment rooms

In several cases, surgical benefits may possibly be incorporated for some types of surgery and associated costs. Hospital expense insurance offers benefits for daily hospital room and board and assorted hospital charges whilst the insured person is confined to the hospital. The policy might provide for a particular dollar amount for the daily hospital room and board benefit, though the tendency is in the direction of coverage of not more than the semiprivate room charge unless a private room is medically required. The room and board benefit may well be paid on either an indemnity basis or a reimbursement basis, depending on the individual plan.

Indemnity programs are occasionally called dollar amount policies. Room and board rates change by geographic location, however it is not unusual to find room and board rates ranging from $150  to $750  per day or more.

In general, the maximum number of days is from 40  to 500 . More commonly, room and board expenses are paid on a reimbursement basis. This is {frequently called an expenses incurred basis~This is also known as a expenses incurred basis~This is commonly called a expenses incurred basis}. Under this plan, the policy will reimburse in one of two ways.

• The actual charges for a semiprivate room are covered.

• A percentage of the actual fee is paid, with no definite dollar limit.

Under the first reimbursement option, the medical insurance company will pay the full actual semiprivate room rate, regardless of what it is. Under the second reimbursement option, the healthcare insurance company pays a specific percentage, regardless of what the actual charges are. A familiar percentage is 80%.

To summarize, with the actual expenses type of reimbursement program, the health insurance will pay the actual amount charged for a semiprivate room without regard to a specific dollar limit. With the percentage type of reimbursement health insurance, the plan may pay a certain percentage of the actual charges.