BASIC MEDICAL EXPENSE COVERAGES

Historically, medical expense coverage consisted of separate benefits for hospital expenses, surgical expenses, and physicians' visits. Coverage was limited, and many types of medical expenses were not covered. In this environment, two developments took place: (1) basic coverages for other types of medical expenses were developed (2) and a vast majority of employers began to provide more extensive benefits to employees than had previously been available through the commonly written basic coverages. While this broader coverage is often provided through a single comprehensive contract, many employees who have medical expense benefits under traditional plans are still covered under medical expense plans that consist of selected basic coverages supplemented by a major medical contract. This is particularly true for large employers, while small employers are much more likely to use a single major medical contract. Basic plans consist of three traditional coverages:

- Hospital expense benefits

- Surgical expense benefits

- Physicians' visits expense benefits

In addition, other types of medical expense coverage can be written as a basic benefit. While many of these basic coverages can be written separately, it is common for them to be incorporated into a single contract.