Rising health costs today mean that we are increasingly moving away from traditional types of health insurance and the original fee-for-service health insurance plan is rapidly being replaced by various other plans including HMO (health maintenance organization) plans, PPO (preferred provider organization) plans and POS (point of service) plans.

Basically fee-for-service health insurance plans are intended to cover unanticipated medical bills due to injury and illness and give policy holders substantial freedom in choosing where treatment is sought and by whom such treatment is given. Fee-for-service policy holders are also usually responsible for making payment for their treatment and subsequently claiming back the cost from their insurer.

The newer plans by contrast are focused far more upon routine health care with the objective of eliminating unnecessary costs by keeping policy holders well and spotting conditions at a very early stage when they are hopefully simple to treat. These plans ease administration for policy holders but at the same time remove much of the freedom to decide where and from whom treatment may be received.

The majority of people today will be covered by the newer types of health insurance instead of by traditional fee-for-service plans primarily not only because of their reduced cost but also because there is a lot less administration when it comes to making claims on your policy. In addition, an increasing number of employers who offer group health insurance plan membership to their employees are also selecting these newer types of plan. Nonetheless, there is still a substantial number of people who like the freedom of choice which a fee-for-service policy gives them and it is here where you may wish to look at major medical insurance.

Fee-for-service policies provide three types of coverage; basic health insurance, major medical insurance and comprehensive insurance.

Basic health insurance policies will vary from one health insurer to the next but will generally cover hospital treatment (plus room and board), some hospital services (such as x-rays and medication), surgery (whether performed in hospital or at another recognized surgery center) and some doctors visits.

Major medical insurance policies by contrast are intended to cover the treatment of long-term and high cost illnesses and injuries as well as in and out-patient bills associated with such illnesses and injuries.

Comprehensive insurance cover is simply a policy which encompasses both basic and major medical coverage.

Not surprisingly major medical insurance is a very popular choice as the majority of people are quite happy to pay the day to day expense of health care but are concerned about how they would cope in the event of a significant illness or injury which might involve large medical expense which could drag on for weeks, months or even years.

Regrettably, the security and choice which is provided by major medical insurance is reflected in the cost of fee-for-service policies in general and so it is becoming more and more of an option which many people would like to select but which is just too expensive.