The first portion of a covered Major Medical expense that the insured is required to pay is called the

• A. Coinsurance
• B. Initial deductible
• C. Copayment
• D. Out-of-pocket maximum

Answer: (B)

Understanding major medical plans, the deductible is the amount the insured must pay out-of-pocket before the insurer starts paying benefits. It represents the initial portion of covered expenses you’re responsible for. After the deductible is met, costs may be shared through coinsurance (a percentage of charges) or copayments (a fixed amount per service), with an out-of-pocket maximum capping total expenses for the year. The term “initial deductible” emphasizes that this is the first amount paid before coverage kicks in, which is why it’s the correct concept for the described scenario.