Which item is not a characteristic of a major medical expense policy?

• A. Elimination periods
• B. Coinsurance
• C. Deductibles
• D. Out-of-pocket maximums

Answer: (A)

Major medical expense policies are built around cost-sharing features that directly manage what the insured pays out of pocket. You typically see a deductible the policyholder pays first, then coinsurance sharing remaining costs with the insurer, and an out-of-pocket maximum that caps total personal spending for covered services. An elimination period, however, is a waiting period before benefits begin, and it is not used in major medical coverage. It’s more common in disability income policies (where benefits don’t start until after a set period of disability). Because major medical plans generally provide coverage after meeting the deductible (with coinsurance and a cap via the out-of-pocket maximum) without imposing a separate waiting period for benefits, elimination periods aren’t a characteristic of this type of policy.