Which of the following is not a typical cost-sharing feature of a major medical policy?

• A. Deductible
• B. Coinsurance
• C. Elimination period
• D. Out-of-pocket maximum

Answer: (C)

Cost-sharing features describe how the insured shares costs with the insurer during a policy year. In a major medical plan, you typically have a deductible (you pay up to a certain amount before the plan pays), coinsurance (you pay a percentage of covered expenses after the deductible is met), and an out-of-pocket maximum (a cap on your total out-of-pocket costs for the year). An elimination period, however, is a waiting period before benefits begin and is common in disability or long-term care policies, not a standard cost-sharing feature of major medical coverage. Because major medical plans generally don’t include a waiting period that delays benefits for medical events, elimination period is not a typical cost-sharing feature.