Health · Chapter 15 · Basic Plans

Basic Medical Expense Insurance

Definition

First-dollar coverage (no deductible) with modest limits for a specific list of services — not listed, not covered. Three main forms: basic hospital, basic surgical, basic physician. Sold today mainly as fixed-indemnity 'excepted benefits' — exempt from ACA rules when paid as fixed per-day/per-service amounts, and never minimum essential coverage.

In plain English

Pays from dollar one — but not much, and only for what's on the list.

Exam tip

Basic = first-dollar + limited list + low limits. Major medical = deductibles + comprehensive + high limits. THE core contrast of this chapter.

Easy to confuse with

These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.

Basic Hospital Expense Insurance Basic Surgical Expense Insurance Basic Physician (Medical) Expense Insurance Major Medical Expense Insurance

Drill this term Chapter lesson Chapter practice test