A policy that provides coverage on an in-hospital basis only and has a limited daily room and board benefit is best described as which type?

A policy that provides coverage on an in-hospital basis only and has a limited daily room and board benefit is best described as which type?

• A. Basic hospital
• B. Comprehensive major medical
• C. Physician's indemnity
• D. Medical savings plan

Answer: (A)

The main idea here is identifying a policy that pays only for hospital confinement with a limited daily room-and-board benefit. That describes basic hospital insurance. This type covers the costs tied to being admitted to a hospital, typically paying a fixed daily amount for room and board, and it usually doesn’t cover outpatient services, physician fees, or major medical expenses. If you compare it to other types: comprehensive major medical provides broad coverage beyond hospital stays, including outpatient and major medical care; physician's indemnity pays fixed amounts for physician services rather than hospital room and board; a medical savings plan revolves around a savings account tied to high-deductible coverage for broader medical costs, not restricted to in-hospital days.

The main idea here is identifying a policy that pays only for hospital confinement with a limited daily room-and-board benefit. That describes basic hospital insurance. This type covers the costs tied to being admitted to a hospital, typically paying a fixed daily amount for room and board, and it usually doesn’t cover outpatient services, physician fees, or major medical expenses.

If you compare it to other types: comprehensive major medical provides broad coverage beyond hospital stays, including outpatient and major medical care; physician's indemnity pays fixed amounts for physician services rather than hospital room and board; a medical savings plan revolves around a savings account tied to high-deductible coverage for broader medical costs, not restricted to in-hospital days.