Explain how a typical major medical contract works

What will be an ideal response?

After a deductible is paid by the insured (e.g. $500 ) the insured pays typically 20 percent of each dollar of expense (called participation or copayment) and the insurer pays 80 percent. Once the insured's out-of-pocket exceeds a preset cap (e.g. $1,000), the insurer pays 100% up to a high policy limit (e.g. $250,000). All of the charges must be eligible medical expenses under the contract.