Certified Financial Consultant (CFC) Practice Exam

What does the Carry-Provision allow an insured to do with medical expenses incurred during the last 90 days of a calendar year?

1. Apply such expenses to the next year's premium

2. Apply such expenses to a Health Savings Account

3. Apply such expenses to the new year's deductible

4. Carry over to the next year without restriction

The correct answer is: Apply such expenses to the new year's deductible

The Carry-Provision is a benefit feature in certain health insurance plans that allows insured individuals to use medical expenses incurred during the final 90 days of a calendar year towards meeting the deductible in the following year. This is particularly advantageous for individuals who may have significant medical expenses toward the end of the year, as it helps them start the new year with already applied expenses, thereby reducing the deductible they would need to meet for the new year. This provision is designed to provide a smoother transition for individuals managing health expenses across years and can be critical in cases where medical treatments or services align perfectly with the end of the year, allowing individuals to maximize their benefits more efficiently. The provision reflects an understanding of the timing of healthcare needs and attempts to alleviate some of the potential financial burdens on insured individuals as they navigate their health coverage.