Final answer:
Basic Medical Expense insurance indeed limits coverage to specific types of medical care such as physician services and outpatient visits, and individuals have to pay a deductible before coverage starts, in addition to copayments or coinsurance for services received.
Step-by-step explanation:
The assertion that Basic Medical Expense insurance limits coverage to specific types of medical care is true.
These basic plans often restrict coverage to predefined medical services and treatments, addressing routine costs such as physician services, outpatient visits, and medical tests.
Individuals enrolled in such plans usually are responsible for a deductible, which is a preliminary out-of-pocket expense before the insurance starts covering costs.
Additionally, fee-for-service arrangements reimburse healthcare providers based on the services provided, while health maintenance organizations (HMOs) are devoted to providing healthcare for a set fee per enrollee, managing how services are allocated among patients.
Yet, even when insurance does cover costs beyond the deductible, insured individuals often still encounter cost-sharing mechanisms, such as copayments or coinsurance, where they are expected to pay a certain percentage or fixed fee for services.
Thus, while Basic Medical Expense insurance offers coverage for certain healthcare costs, it is critical for policyholders to understand the limitations and cost-sharing responsibilities associated with their specific plan.