1. Basic hospital expense coverage typically pays for:

Hospital room and board and miscellaneous hospital charges

Basic hospital expense coverage pays for room and board and miscellaneous hospital charges up to stated limits.

2. Major medical coverage is designed primarily to:

Provide broad coverage for large medical expenses

Major medical provides broad, high-limit coverage for significant medical expenses after a deductible.

3. Under capitation, an HMO compensates a provider by paying:

A fixed amount per member per period regardless of services used

Capitation pays the provider a set amount per enrolled member per period regardless of utilization.

4. A prescription drug formulary is best described as:

A list of covered drugs, often arranged in tiers

A formulary is the plan's list of covered medications, frequently organized into cost tiers.