In the Major Medical example, how much is the deductible amount?

• A. $200
• B. $2,000
• C. $400
• D. $1,600

Answer: (A)

The deductible is the amount you must pay out-of-pocket before the insurer starts sharing costs for covered medical services. In this Major Medical example, that deductible is $200, so you would pay the first $200 of eligible expenses in the policy year before the plan begins to pay its portion (with coinsurance applying to the remaining costs until other limits are reached). The other dollar amounts shown typically relate to different plan features, such as higher deductibles in other plans or other limits, but they do not represent the deductible in this specific example.