What is the purpose of an Integrated or Corridor Deductible?

An Integrated or Corridor Deductible serves a specific function within health insurance plans, primarily in coordinating benefits between different coverage levels. It is particularly relevant when a basic plan has exhausted its coverage, transitioning an insured individual into a higher level of coverage, such as a supplementary or major medical policy.

When the basic plan benefits have been fully utilized, the integrated deductible applies to determine how much the policyholder must pay out of pocket before the higher level of benefits takes over. This means that the deductible acts as a threshold that needs to be met before additional coverage kicks in, which is essential for managing care after initial coverage has been utilized.

Understanding this mechanism is crucial for policyholders as it affects their overall out-of-pocket costs and coverage. The integrated deductible helps establish a clear framework for how benefits defer to different plans, making it logical for it to showcase the deductible used as coverage transitions from one plan to another. Thus, it clearly demonstrates the relationship between the basic plan benefits and subsequent coverage levels.