Which type of health coverage is most likely to involve the use of a deductible?

Major Medical policies are designed to provide comprehensive coverage for a broad range of healthcare services, which often includes high expenses associated with serious illnesses or injuries. One key feature of these policies is the involvement of a deductible. A deductible is the amount that an insured person must pay out-of-pocket before the health insurance plan begins to pay for medical services. This mechanism helps manage costs for both insurers and insured individuals and is common in policies that cover extensive medical care.

In contrast, Basic Hospital policies typically cover only a limited set of hospital services and may not have a deductible component. Short-term health insurance is usually intended for temporary coverage and often has limited benefits, which may not include a deductible. On the other hand, Medicare Advantage plans are a type of Medicare coverage provided by private insurers, where costs and coverage options can vary widely but are generally structured differently than traditional major medical insurance. Thus, major medical policies stand out for their typical inclusion of deductibles due to their extensive scope of coverage.