Which policy feature allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible?

Which policy feature allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible?

• A. Embedded deductible
• B. Carryover provision
• C. Grace period
• D. Deductible reset

Answer: (B)

The key idea is how some plans handle the deductible across year boundaries. A carryover provision lets amounts you paid toward the deductible near the end of one year be applied to the next year’s deductible instead of resetting entirely at the new year. In practice, if you incur medical expenses toward the deductible late in the year, those amounts can “carry over” and count toward meeting the next year’s deductible first. This means you may start the new year closer to meeting the deductible and start getting benefits sooner once new expenses occur, without having to meet a full new deductible from scratch. The other features don’t address shifting or crediting year-end expenses into the following year: embedded deductible relates to family vs. individual deductibles; a grace period concerns premium payments; and deductible reset typically means starting over at zero, not applying current-year charges to the next year.

The key idea is how some plans handle the deductible across year boundaries. A carryover provision lets amounts you paid toward the deductible near the end of one year be applied to the next year’s deductible instead of resetting entirely at the new year. In practice, if you incur medical expenses toward the deductible late in the year, those amounts can “carry over” and count toward meeting the next year’s deductible first. This means you may start the new year closer to meeting the deductible and start getting benefits sooner once new expenses occur, without having to meet a full new deductible from scratch. The other features don’t address shifting or crediting year-end expenses into the following year: embedded deductible relates to family vs. individual deductibles; a grace period concerns premium payments; and deductible reset typically means starting over at zero, not applying current-year charges to the next year.