All of these types of benefits may be covered by a nonprofit health service plan, except which?

• A. Hospital indemnity
• B. Disability income
• C. Medical expense
• D. Surgical benefits

Answer: (B)

Nonprofit health service plans focus on paying for health care services themselves—things like hospital care, medical expenses, and surgical services—often through direct services or reimbursements rather than cash income. Disability income, however, is designed to replace a portion of earned income when you’re unable to work due to illness or injury, and that type of benefit is not a health service benefit. It’s typically provided by disability income insurance, not by a health service plan. So the exception is disability income, while hospital indemnity, medical expense, and surgical benefits are the kinds of health service plan benefits you’d expect to see covered.