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Corridor Deductible

Corridor Deductible

What Is a Corridor Deductible?

A corridor deductible is expenses paid by the insured in excess of an insurance policy's coverage limit, however below the threshold at which extra coverage options are accessible.

Corridor deductibles bridge the gap between policies that come to the aggregate limit of coverage and any extra coverage that might be in effect.

Figuring out Corridor Deductibles

Corridor deductibles are most commonly found in wellbeing and medical insurance plans, explicitly those that have co-insurance highlights. The corridor deductible is typically a fixed dollar amount for every loss. The corridor deductible is utilized during the period among fundamental and major medical expense coverage for a policyholder. Essential policy benefits are paid first, and when the fundamental policy benefits are exhausted, the corridor deductible then applies. After the corridor deductible is paid, the major medical plan benefits come into effect.

Costs over the aggregate limit or more the corridor deductible might be shared by the insured and insurer through a cost-sharing arrangement. Policies might have an initial deductible that is paid by the insured, a first benefit level that is paid by the insurer, a corridor deductible paid by the insured, and a secondary benefit level with costs shared by both the insured and insurer.

People are frequently given a wide assortment of options while purchasing health insurance policies, particularly with regards to deductibles and coverage limits. Policies with low deductibles keep the insured from being required to pay as much personal before the insurance plan coverage starts to pay costs, yet these policies might cost more than policies with higher deductibles. Having a high coverage limit allows the insured to have a greater amount of the total cost of procedures and care paid for by the insurer, but on the other hand are probably going to cost more than policies with lower limits.

A corridor deductible is taken after all the medical and hospital expenses are paid up to a predefined amount.

Illustration of How a Corridor Deductible Works

For instance, a health care coverage policy might require the insured to pay a $250 deductible before coverage starts. When the main deductible is paid the insurer is responsible for up to $1,500 of medical expenses. This payment is important to cover part of the insured medical or hospital bills.

When this limit is reached, the insured is then responsible for a corridor deductible of $2,000 before any further benefits apply. Any benefits after the corridor deductible are shared by the insured and the insurer, with the insurer paying 80% of any further expenses, up to the stop-loss limit.


  • A supplemental policy is probably going to incorporate a stop-loss limit and a maximum lifetime benefit limit.
  • A corridor deductible applies in circumstances where a supplemental major medical insurance policy is in effect.
  • Fundamental policy benefits are paid before corridor deductibles.
  • Corridor deductibles are most frequently utilized in conjunction with medical insurance.
  • The corridor deductible is generally a fixed dollar amount for every loss and applies in the momentary area between fundamental coverage and major medical expense coverage.