In major medical plans, when is a corridor deductible applied?

• A. After the standard deductible is met
• B. Before any benefits are paid
• C. In the middle of the deductible
• D. It applies to co-pays only

Answer: (C)

The test is checking where a corridor deductible sits in the cost-sharing sequence of a major medical plan. A corridor deductible is part of the deductible phase; it sits in the middle of the deductible process, before the full deductible is met and before benefits begin to pay under the plan’s coinsurance. In other words, you encounter this amount while you’re still accumulating deductible costs, not after the deductible is fully satisfied. Once the deductible (including the corridor portion) is met, benefits kick in according to the plan’s coinsurance until the out-of-pocket maximum is reached. Co-pays, if any, are separate and not governed by the corridor deductible.