Illinois Health Insurance Practice Exam

Which type of coverage involves the payment of benefits for only hospital expenses, with deductibles, coinsurance and/or co-payments applying?

1. Physicians expense benefits

2. Comprehensive Medical Expense coverage

3. Surgical Expense benefits

4. Hospital expense coverage

The correct answer is: Hospital expense coverage

Hospital expense coverage specifically refers to insurance benefits that are designed to cover expenses incurred during stays in the hospital. This type of coverage typically applies to costs associated with room and board, nursing care, and sometimes ancillary services like laboratory tests or medications administered during the hospital stay. In this context, the mention of deductibles, coinsurance, and co-payments highlights the structure of this coverage. These terms refer to the way costs are shared between the insured and the insurer, which is common in hospital expense coverage. This means that while the insurance will cover a significant portion of the costs related to a hospital stay, the insured must also contribute financially through these mechanisms. Other options do not specifically limit their focus to hospital expenses alone. For instance, comprehensive medical expense coverage encompasses a wide range of medical services beyond just hospital services, including outpatient care and preventive services. Similarly, surgical expense benefits are particular to the costs associated with surgical procedures, and physician's expense benefits cover services provided by physicians, which again goes beyond just hospital expenses. Thus, the focus of the question is clearly on benefits tied specifically to hospital-related costs, making hospital expense coverage the correct choice.