A major medical policy typically

• A. Provides benefits for reasonable and necessary medical expenses, subject to policy limits
• B. PAYS ONLY DENTAL EXPENSES
• C. Covers all medical expenses without limits
• D. Only pays hospital room charges

Answer: (A)

Major medical policies are designed to provide broad protection by reimbursing or paying a portion of charges for reasonable and medically necessary medical expenses, after any deductible and subject to policy limits and coinsurance. This means they cover a wide range of services—hospital inpatient and outpatient care, physicians, surgeries, X-rays, labs, and more—not just one narrow category. The coverage is not unlimited; there are annual or lifetime maximums and cost-sharing requirements. They also exclude expenses that aren’t considered medically necessary. So, the correct description is that the policy provides benefits for reasonable and necessary medical expenses, subject to policy limits. Dental expenses, coverage of all costs without limits, or payment of only hospital room charges don’t fit this framework.