What is the primary purpose of Medical Expense Insurance?

What Is The Primary Purpose Of Medical Expense Insurance? Why do we buy medical coverage? exactly to get financial support at the time of our physical and mental illness. That’s why if you ask me what you will get against of your medical expense policy? I will reply with a simple answer you need for your medical treatment!

However, don’t get biased with my simple answer, as all insurance companies may not willingly give you all medical support. So know how you will get the support, (of course, know how you will get the coverage in case of your medical treatment from your insurer before you buy the coverage.). Though it depends on the company policy, usually all medical expense coverage includes-

  • payments for medical services,
  • doctors’ fees, and
  • the cost of equipment supplies,
  • diagnostic devices used.

When anybody falls sick, they go to the doctor, take the necessary action, and finally pay the bill. It’s a very normal procedure. But a problem arises when the bill is exceeding too much of your expectations. Sorry, I used this term expectation nobody wants to pay for the medical expenses.

Presently all over the world. In America as well, people are habituating to so-called modern civilization, and the side effect also comes each month. And that is too much expense for the medical bill. As people are eating junk food frequently, involving too much digitalization to pass time, (late night sleep), too much tension, and too much pollution, everything just makes people sick most often. However, we are sliding from our main points. 

Whatever, are the reasons, all we have to count huge money from our pocket as our (both you, me, family members) medical bill? Finally, it is going to be very tough to arrange this huge cost each month. 

Here is the main purpose of a medical plan. Basic Medical Expense Insurance often termed as the First Dollar Insurance offers the user an ‘Up Front’ (without the deductible of the patient). This policy is limited by a set amount. Sometimes the medical services for which this policy will pay, are set by the insurer. It’s financial protection for your medical service, which you are going to take from the registered physicians. 

Generally, the medical coverage you can get from a health insurer may be as follows-

  • Basic Medical Insurance
  • Major Medical Insurance

Basic Medical Insurance has a limited set amount for that, these plans only offer to reimburse your selected medical service. However, Major Medical Insurance are broader health plan that almost offer costs for all types of medical services. People often call it complete medical coverage. 

So medical coverage is only to offer you the reimbursement of your medical cost in a different but definite format. Normally what happens is, that the policyholder pays money on a fixed-term basis (monthly/yearly) and in return for this payment, the insurer pays the medical service (the user needs to expend).

Though the policyholder pays a fixed amount of cost per term to their health insurer, once he or she falls sick, and needs to be hospitalized, the insurer will pay the cost (whatever the amount is). Though every policy needs an underwriting procedure demonstrating how they will reimburse the cost, or what will be the maximum cost they will provide to each client.

Again some insurers may go a contract to the user underwriting a fixed amount per medical service. Suppose you have had an accident, for why you had to be hospitalized for five days. Each day you had to spend $100 for your treatment. So in total, you had to bear ($100X 5=$500). So if your insurer has a contract to give you $200 for each day against this medical service, you will get in total ($200X5=$1000) on your hand. So the remaining ($1000-$500=$500) dollars you can use to meet any of your other purposes. 

Other scenarios also could happen, like you are on a reimbursement contract with your insurer. So in that case, you will get exactly the amount which you had to bear for your service. So in that case you will get $500 for your medical expenses. 

Do you now understand what the aim of medical expense insurance is? It is only to bear your medical cost against your definite payments per term.


Whether you have a reimbursement or per-service paying contract with your medical insurer, the main purpose of your health insurer is only to bear your medical cost. Depending on the insurer, or your type of health policy, you may get the medical cost differently but the ultimate goal of each medical expense insurance is the same for all.

So don’t feel hesitate to purchase one capable health plan for you or your family. Indeed, it is a friend of your need.

Thank you.

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