Basic Hospital Expense Plans

Basic hospital expense plans provide for the payment of room and board and certain other hospital charges such as the cost of the operating room, x-rays, laboratory fees, medicines, and supplies. There is usually a maximum dollar amount paid for room and board and a maximum for other expenses with a limit on the number of days of protection. While commercial insurers generally reimburse the insured for all or a portion of his hospital expenses, Blue Cross plans often state their coverages in terms of hospital services to be provided rather than monetary reimbursement. (Texas Blue Cross does not.) Such plans are often called service plans as opposed to indemnity plans. They always pay the hospital directly. Common limits of coverage are the type of room – i.e., semiprivate or ward -and the number of days the room will be provided. 

The following is an illustration of the types and extent of coverages included in a basic hospital expense contract: 

Room and board (30, 60, 90, or 120 days) $50 to $400 a day. 

Miscellaneous expenses (while in hospital up to $200 Emergency treatment)
(out-patient) up to $300.