Final answer:
Major medical insurance provides coverage for extensive medical bills that are not covered by basic health insurance. It includes protection for serious health conditions and involves various cost-sharing mechanisms such as deductibles and copayments.
Step-by-step explanation:
Major medical insurance serves as a backup for expenses not covered by basic health insurance.
This type of insurance typically comes into play for expenses beyond what regular health plans cover, such as serious illnesses or injuries that lead to extensive medical care and substantial bills.
Part B insurance, which is optional, addresses health-care costs outside of hospital stays and includes physician services, medical tests, and outpatient visits.
However, it requires participants to pay a monthly fee, deductibles, and copayments, with the government bearing a significant part of the costs.
Health insurance structures often include a deductible, which is a fixed amount that has to be paid out-of-pocket before the insurance coverage begins to pay.
Additionally, there are copayments and co-insurance payments, which result in cost-sharing between the insured individual and the insurance company.
Coverage options can depend on whether one's insurance is employment-based or purchased directly.