What does a corridor deductible refer to in major medical plans?

A corridor deductible in major medical plans specifically refers to the gap or amount that must be satisfied before the major medical insurance benefits begin to cover expenses. This type of deductible typically applies in situations where a basic health insurance plan provides initial coverage up to a certain limit, and any costs beyond that limit are covered by the major medical plan—provided the corridor deductible has been met.

For instance, if a basic plan covers certain medical expenses up to $5,000, and the corridor deductible is set at $2,000, the policyholder would be responsible for paying those first $2,000 of expenses beyond that basic coverage. After meeting that corridor deductible, the major medical insurance would then take over and start paying its share for additional expenses.

This structure is important for policyholders as it helps to manage costs by delineating how much they need to pay out-of-pocket before receiving more comprehensive coverage, thus balancing the cost-sharing between basic and major medical insurance.