The major medical deductible carryover period normally applies to expenses incurred during the last ___ months of the plan year.

• A. one
• B. two
• C. three
• D. four

Answer: (C)

In major medical plans that include a deductible carryover feature, expenses incurred toward the end of the plan year can be credited toward the next year’s deductible. The usual carryover window is three months. So, costs you incur in the last three months of the plan year can reduce what you’ll need to meet as the deductible in the following year. For example, if your deductible is $1,000 and you accumulate $800 in October through December, those $800 can be carried into the next year, effectively lowering the amount you must meet before benefits kick in next year. Not all plans offer this, but when present, three months is the standard period for the carryover.