What is one of the common requirements of major medical insurance plans?

One of the common requirements of major medical insurance plans is the presence of a deductible and coinsurance. Major medical insurance is designed to cover a wide range of healthcare services and expenses, often providing substantial coverage for high-cost medical care.

The deductible is the amount that the insured must pay out-of-pocket before the insurance company begins to cover the costs. This feature is crucial because it helps to limit the insurer's exposure by requiring consumers to share in the costs of their healthcare. After meeting the deductible, coinsurance typically comes into play, where the insured pays a percentage of the medical expenses, and the insurer covers the remainder. This arrangement encourages responsible use of healthcare resources and helps to keep premiums more affordable.

While some major medical plans may offer unlimited coverage amounts, it's not universally required, nor are flexible premium payments a standard feature. Coverage for only hospital stays would not characterize major medical insurance, as these plans generally cover a variety of services, including outpatient care, preventive services, and more. Thus, the presence of a deductible and coinsurance represents a key characteristic of major medical insurance policies.