Which of the following is a cost-sharing feature commonly found in Major Medical policies?

• A. Copayment
• B. Deductible
• C. Riders
• D. Coinsurance

Answer: (D)

Cost sharing means the insured pays a portion of medical costs rather than the insurer paying all of them. In Major Medical plans, you typically see a deductible first, then the remaining charges are shared through coinsurance. Coinsurance is the percentage of covered expenses you pay after you meet the deductible, continuing until you reach the plan’s out-of-pocket maximum. This mechanism is a hallmark of Major Medical policies because it balances cost control for the insured with protection against catastrophic expenses.

Copayments are fixed amounts paid per service and are more common in some managed care plans; riders are optional add-ons; and a deductible is an upfront amount you must pay before coverage kicks in. While deductible is itself a cost-sharing element, the ongoing shared-cost feature characteristic of Major Medical is coinsurance, making it the best answer.