What is a Defined Benefit Medical Plan?


A defined benefit medical plan utilizes a defined payment schedule for a wide variety of medical expenses. They pay out fixed amounts for things like daily hospital expenses, physician office visits, labs, etc.

From the insurance company’s perspective, they do not care what is wrong with you, where you go for treatment, what treatment you receive or how much it costs. They pay what they pay according to a pre-announced schedule.

For example, a plan might pay out $2,000 a day for a hospital stay regardless of the actual charge or $100 for a physician office visit. With the PPO discount, those benefits will cover most charges.

These plans offer a surprising amount of coverage. They cover a specified number of office visits, checkups, emergency room, prescriptions, labs and x-rays as well.

By utilizing the included PPO network arrangements, you can get reasonable coverage for the majority of medical mishaps and a very affordable monthly premium. Another important feature is that these plans are guaranteed acceptance; no one can be turned down!