What type of insurance system is designed for covering a wide range of healthcare expenses, typically with higher premiums?

Major medical insurance is indeed designed to cover a wide range of healthcare expenses, making it a comprehensive option for individuals seeking robust health coverage. This type of insurance typically involves paying higher premiums, but in return, it provides extensive benefits.

Purchasing major medical insurance means that policyholders can receive coverage for significant medical events, such as hospitalizations, surgeries, and catastrophic health issues. The intention behind this coverage is to protect individuals from high medical costs that could arise unexpectedly and potentially lead to financial hardship.

In contrast, Health Maintenance Organizations (HMOs) usually offer lower premiums but come with restrictions regarding provider networks and require referrals for specialists, limiting the breadth of covered services. Short-term health insurance generally provides temporary coverage for gaps in insurance but does not cover pre-existing conditions or provide comprehensive care. Taxable health savings accounts are savings accounts intended to help individuals save for medical expenses but do not themselves provide insurance coverage.