Which of the following is classified as a limited benefit plan?

Prepare for the Georgia Health Insurance Exam. Study using flashcards, multiple-choice questions, and get ready with explanations for each question. Ace your exam!

A limited benefit plan is designed to provide specific types of coverage, rather than comprehensive insurance that covers a wide array of health services. Cancer policies, as indicated in the correct choice, fall into this category because they are explicitly tailored to cover the treatment and related costs associated with cancer. These policies often have maximum benefit limits, specific waiting periods, and do not cover the broad range of healthcare services that a comprehensive policy would.

In contrast, major medical policies provide extensive coverage for a variety of health-related expenses, including hospital stays, surgeries, and preventive care, making them comprehensive in nature. Comprehensive health insurance, as the name suggests, is designed to cover most or all healthcare expenses, thus not fitting the limited benefit classification. Health savings accounts (HSAs) are not insurance policies at all, but rather tax-advantaged accounts used to save for medical expenses, and thus cannot be classified as a limited benefit health insurance plan.

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