Arizona Life and Health Practice Exam

A major medical expense policy typically does NOT?

1. Pay for hospital room and board

2. Pay surgeon fees on a first-dollar basis

3. Cover specified preventive services

4. Include outpatient care

The correct answer is: Pay surgeon fees on a first-dollar basis

A major medical expense policy generally does not pay surgeon fees on a first-dollar basis. This means that these policies typically include a deductible that the insured must pay before the insurance starts to cover medical expenses. First-dollar coverage refers to insurance that covers expenses without requiring the insured to pay a deductible first, which is not the case with major medical policies. In contrast, major medical expense policies usually do cover significant medical costs such as hospital room and board, specified preventive services, and outpatient care, although some may have limitations or co-payments associated with these services.