An insured has a major medical plan with a carryover provision and a $300 deductible. The only expense the insured incurs throughout the calendar year is a $100 doctor's visit in November. What will the insured have to pay toward the new year's calendar deductible?

Rationale

The insured will have to pay $200 toward the new year's calendar deductible.

Since the insured incurs a $100 expense in November, this amount contributes towards the previous year's deductible. As the carryover provision allows expenses from the end of the year to carry over into the new year, the remaining $200 of the deductible will need to be paid in the new year.

A ($100) YOUR ANSWER

Incorrect. The $100 doctor's visit in November applies towards the previous year's deductible, leaving $200 to be paid in the new year.

B ($200) CORRECT

Correct. With a $100 expense incurred in November, the insured is left with $200 to pay for the new year's deductible.

C ($300) YOUR ANSWER

Incorrect. The $100 doctor's visit in November is applied towards the deductible for the previous year, so the insured will only be responsible for $200 in the new year.

D ($400) YOUR ANSWER

Incorrect. The total deductible amount for the new year is $300, but since $100 has already been paid in the previous year, the remaining amount to be paid in the new year is $200.

Conclusion

In this scenario, where the insured incurs a $100 expense near the end of the calendar year with a carryover provision, the amount paid for the doctor's visit contributes to the previous year's deductible. As a result, the insured will have $200 left to pay towards the new year's calendar deductible.

An insured has a major medical plan with a carryover provision and a $300 deductible. The only expense the insured incurs throughout the calendar year is a $100 doctor's visit in November. What will the insured have to pay toward the new year's calendar deductible?

The insured will have to pay $200 toward the new year's calendar deductible.

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