What is the main advantage of having a carryover provision in a health insurance policy?

The main advantage of having a carryover provision in a health insurance policy is the ability to transfer out-of-pocket costs to a future deductible. This provision allows insured individuals to apply certain expenses that were incurred but not fully utilized in a given policy year toward their deductible in the following year. For instance, if a policyholder has met a portion of their deductible but not the entire amount, any excess qualifying out-of-pocket costs can help reduce the deductible amount for the next year. This mechanism provides a form of financial relief and encourages individuals to seek necessary medical care without the immediate pressure of meeting the full deductible in a single year.

Having this provision can effectively ease the financial burden on insured individuals, allowing them to better manage their health care expenses over multiple years. As a result, it fosters a more accessible healthcare experience, particularly for those who may face high medical costs in one year but have lower costs in the subsequent year.