Which statement about major medical benefits is false?

Which statement about major medical benefits is false?

• A. They have a deductible
• B. They include coinsurance
• C. Benefits have no maximum limit
• D. They cover hospital, medical services, and prescription drugs

Answer: (C)

Major medical benefits are designed to share costs after you meet a deductible, often with coinsurance, and they cap the amount the plan will pay through a maximum limit. The statement that there is no maximum limit is false because plans set a limit on covered expenses, after which the insurer covers 100% of remaining eligible costs (up to the plan’s rules). The other aspects are true: you typically must meet a deductible before benefits kick in, you usually pay coinsurance after the deductible, and these plans cover hospital stays, other medical services, and often prescription drugs.

Major medical benefits are designed to share costs after you meet a deductible, often with coinsurance, and they cap the amount the plan will pay through a maximum limit. The statement that there is no maximum limit is false because plans set a limit on covered expenses, after which the insurer covers 100% of remaining eligible costs (up to the plan’s rules). The other aspects are true: you typically must meet a deductible before benefits kick in, you usually pay coinsurance after the deductible, and these plans cover hospital stays, other medical services, and often prescription drugs.