What must an insured pay before the major medical coverage will begin benefiting under supplemental plans?

In supplemental health insurance plans that include major medical coverage, a corridor deductible is a specific amount that the insured must pay before the major medical benefits kick in. This deductible is essentially a gap between the coverage provided by a basic plan and the major medical insurance. When the initial basic benefits are exhausted, the insured is responsible for the corridor deductible before the more comprehensive major medical coverage becomes active.

The corridor deductible is designed to prevent over-utilization of services and ensures that patients have some financial responsibility before accessing higher benefit levels. It reflects the structured approach that insurance companies use to share costs between the insurer and the insured.

In comparison, a co-payment is typically a fixed fee paid at the time of service, an annual premium is the total amount paid for coverage over a year, and an out-of-pocket maximum is the highest amount an insured has to pay in a policy year, after which the insurance covers 100% of additional costs. These other options serve different purposes within an insurance policy and do not represent the initial payment threshold for activating major medical benefits in supplemental plans.