Many of these are known as mail-order policies, because they are sold to individuals who answer mailed solicitations or reply to ads in newspapers and magazines or on television. Health insurance covers a variety of costs. Some policies cover a stay in the hospital and services offered by the hospital. Surgical expense coverage provides benefits for surgery resulting from illness or accident. Beyond this, a policy may cover what are called regular medical expenses, including doctor's fees, home nursing, diagnostic tests, and ambulance service.
Some policies also cover prescription drugs.
Major medical, or catastrophic coverage, was introduced in 1949. It entails an added cost, or premium. This coverage pays only for large medical expenses, such as open-heart surgery or organ transplants. Because of enormous increases in medical costs since the 1950s, major medical coverage has grown rapidly in popularity. Health insurance policies frequently carry a deductible clause.