Corridor Deductible
What Does Corridor Deductible Mean?
A corridor deductible is a type of second-order deductible found in health insurance policies. After the initial deductible has been met and the full coverage amount has been exhausted, the insured must pay the corridor deductible before receiving any further reimbursements. Because it only kicks in after the primary coverage has been used up, this kind of deductible can catch people off guard when they’re reviewing premiums, deductibles, co-pays, and coinsurance on a health plan summary.
Insuranceopedia Explains Corridor Deductible
This type of deductible essentially serves as a corridor between the primary, initial level of coverage provided by the insurance policy and a secondary level of coverage, which can only be accessed by exhausting the primary coverage and paying the corridor deductible. Anyone weighing a plan with this kind of layered structure should look closely at how the corridor amount compares to the second-tier coverage limit. Our guide on how to choose health insurance goes through the other factors worth checking before you commit.
