What does a corridor deductible apply to?

A corridor deductible applies specifically to a basic health insurance plan when it is coupled with major medical coverage. In this context, the basic plan typically covers only a limited amount of healthcare expenses. When those expenses exceed the basic plan's coverage limit, the corridor deductible kicks in, meaning the insured must pay a certain amount out-of-pocket before the major medical insurance takes over. This structure is designed to bridge the coverage between the basic insurance benefits and the extensive coverage provided by the major medical insurance, allowing for more comprehensive protection against significant health care costs.

This element of insurance plans is essential for managing the risk of high medical expenses while still offering a more affordable premium through basic coverage. Understanding the function of corridor deductibles is crucial for policyholders as it impacts their financial responsibility in healthcare costs.