Which of the following is listed as an element of Major Medical not found in Basic Medical Expense policies?

• A. Deductibles
• B. Coinsurance
• C. High benefit limits
• D. Stop Loss Feature

Answer: (A)

Deductibles are a cost-sharing element that Major Medical plans use to share risk with the insured. A deductible is the amount you must pay out of pocket before the insurer starts paying for covered expenses. This feature helps keep premiums lower and is a hallmark of Major Medical coverage. Basic Medical Expense policies, by contrast, provide more limited, first-dollar protection with little or no out-of-pocket expense before benefits apply, so they generally do not include deductibles. That’s why deductibles stand out as the element characteristically associated with Major Medical but not with Basic Medical Expense policies.

(While coinsurance, high benefit limits, and stop-loss features are also more typical of Major Medical, the deductible is the clearest differentiator in this context.)