Which statement describes a corridor deductible under a supplementary major medical policy?

Which statement describes a corridor deductible under a supplementary major medical policy?

• A. A corridor deductible eliminates all basic medical coverage before major medical applies.
• B. A corridor deductible is payable by the insured when basic limits are exhausted and before major medical coverage begins.
• C. A corridor deductible is a discount granted on premiums when buying major medical.
• D. A corridor deductible is paid by the insurer as part of the policy admin fees.

Answer: (B)

A corridor deductible is the amount you must pay after your basic medical benefits are exhausted and before the supplemental major medical coverage begins. It acts as a bridge between basic coverage and major medical, with the insured bearing this cost. This is why the correct statement describes the insured paying the corridor deductible when basic limits are reached and before major medical coverage starts. It’s not a premium discount, nor an insurer’s admin fee, and it does not reduce or eliminate basic coverage. For example, once the basic plan pays its limit, you’d pay the corridor deductible, and then the major medical coverage would kick in to cover the remaining eligible expenses.

A corridor deductible is the amount you must pay after your basic medical benefits are exhausted and before the supplemental major medical coverage begins. It acts as a bridge between basic coverage and major medical, with the insured bearing this cost. This is why the correct statement describes the insured paying the corridor deductible when basic limits are reached and before major medical coverage starts. It’s not a premium discount, nor an insurer’s admin fee, and it does not reduce or eliminate basic coverage. For example, once the basic plan pays its limit, you’d pay the corridor deductible, and then the major medical coverage would kick in to cover the remaining eligible expenses.