Question

When employees are actively at work on the date coverage can be transferred to another insurance carrier, what happens to coinsurance and deductibles?

A) They are reset to zero
B) They are carried forward
C) They are waived
D) They are doubled

Answer 1

The transfer of deductibles and coinsurance when coverage is switched to another insurance carrier can vary based on the new plan. Often, provisions such as deductible credit allow for amounts already paid to be carried over, but without such clauses, they may reset to zero. Details are found in the plan documents or through direct inquiries.

Step-by-step explanation:

When employees are actively at work on the date coverage is transferred to another insurance carrier, the handling of deductibles and coinsurance can vary based on the policies of the new insurance plan. Often, there are clauses that allow for the transitional coverage to take into account any deductibles or coinsurance already paid under the previous plan within the same calendar year. This is known as deductible credit or carryover credit. However, without such provisions, deductibles and coinsurance amounts may reset to zero. It means the policyholders might need to meet these costs again. The specifics will be outlined in the new plan documents or can be confirmed through the insurance providers or human resources department.