Final answer:
Hospital Expense Insurance covers costs like room and board, nursing care, and other services during a hospital stay. Deductibles apply before coverage starts, and plans may be fee-for-service or HMO-based.
Step-by-step explanation:
The coverage that provides indemnification to the insured for basic hospitalization of room and board in the hospital, nursing care, laboratory fees, operating room, medical supplies, etc., is defined as Hospital Expense Insurance. This type of insurance is designed to cover costs associated with a hospital stay and the services typically provided in that setting.
It differs from Major Medical Insurance, which covers a broader range of medical expenses including those after hospital discharge, Surgical Expense Insurance, which specifically covers surgeon's fees, and Disability Insurance, which provides financial support when the insured is unable to work due to disability.
Insurance policies commonly include a deductible, which is the amount that policyholders must pay out of pocket before the insurance coverage begins to pay. Some plans operate on a fee-for-service basis, meaning that medical care providers are paid according to the services they provide.
Another form of healthcare plan is a Health Maintenance Organization (HMO), where an organization provides healthcare and is paid a fixed amount per person enrolled, regardless of how many services are provided to the individual.