Major Medical policies are typically characterized by which of the following?

• A. Copayments at every visit
• B. Annual limits on coverage
• C. High coinsurance with no deductibles
• D. Flat deductibles

Answer: (D)

Major Medical policies are built around paying for substantial health care costs after you meet a fixed amount you owe first, then the plan shares the rest. That fixed amount, paid annually, is the deductible. Once you’ve paid that deductible, you typically continue to share costs with coinsurance until you reach the plan’s out-of-pocket limit. This combination—a set deductible plus cost sharing after meeting it—fits the idea of a flat deductible being a characteristic feature.

Copayments at every visit tend to apply to routine or managed-care plans for frequent, smaller services, not the major, high-cost coverage this type of policy is designed to handle. Annual limits on coverage and high coinsurance with no deductible don’t align with how major medical plans are usually structured, since major medical centers the cost-sharing after a deductible, rather than relying on per-visit copays or removing the deductible altogether.