When does a deductible reset?

• A. never
• B. every visit
• C. at the policy anniversary
• D. annually

Answer: (D)

A deductible is the amount you must pay out of pocket before the insurer starts paying benefits. In most medical expense plans, this amount resets on a new policy period, which is annual. So once a new policy year begins, you start again at zero toward your deductible, regardless of what you paid the year before. It isn’t reset with every visit, and it isn’t a never-reset feature. Some plans may use a calendar year or a different policy year for the reset, but the standard concept being tested is that the deductible resets annually. After you meet the deductible, the plan typically pays according to coinsurance until you reach the out-of-pocket maximum, with copays applying as specified by the plan.