Final answer:
Once the healthcare deductible and out-of-pocket maximum are met, the insurance company pays 100% of covered costs for the rest of the policy period.
No further out-of-pocket payments are required by the policyholder for covered expenses within that year. Coverage resets with each new policy period.
Therefore, the correct answer is: option c). The insurance company pays for all covered costs for the rest of your life
Step-by-step explanation:
When you have reached your healthcare deductible and out-of-pocket maximum, the insurance company will cover 100% of your covered healthcare costs for the remainder of the policy period.
This means that any additional covered medical expenses incurred will not require your out-of-pocket payment, as the insurance is designed to take over the full payments under the terms of your benefits for that policy year.
Medical expenses are any costs incurred in the prevention or treatment of injury or disease. Medical expenses include health and dental insurance premiums, doctor and hospital visits, co-pays, prescription and over-the-counter drugs, glasses and contacts, crutches, and wheelchairs, to name a few.
It is important to understand that reaching your out-of-pocket maximum does not extend the insurance benefits indefinitely or for life, but only until the end of the policy period, which is typically one year.