Carry-over provision

You need to understand what a carry-over provision is. Here’s what to know.

What is a carry-over provision?

A carry-over provision is a health insurance provision that allows a person to apply, or carry over, medical expenses from the last three months of the current year to the next year’s deductible. After that deductible is paid, the insurance company picks up coverage of the remaining cost up to the policy limits.

Deeper definition

A carry-over provision helps lessen out-of-pocket health care costs. That’s because the person will be paying all or part of his or her deductible for the new year with last year’s expenses.

This is only applicable when the insured has room left on his or her deductible, after submitting medical expenses from January through September and then incurs a medical expense from October to December. This is also known as a fourth-quarter deductible carry-over.

To be sure, this protects the policyholder from paying a deductible for medical expenses incurred in November and then paying another deductible for medical expenses in January of the new calendar year.

Though it is more common among employer-sponsored health plans, the deductible carry-over credit is available through individual health plans as well.

If you’re looking for a credit card to help pay medical deductibles, check out the rates at

Carry-over provision example

Richard’s health insurance has a carry-over provision. He is enrolled in a BBF Insurance plan with a $2,500 deductible, and he has applied $1,500 worth of health care expenses toward his deductible in the first nine months of the year.

When he files $1,000 in expenses from a medical procedure in November, the insurer carries over that expense, applying it to the next year’s deductible. That means Richard has only $1,500 left on his deductible for the next year.

Do you need a personal loan to pay for a hospital stay? You’ll find great rates at

More From Bankrate

  • Ameriprise Insurance review: Car, home and life

    A well-established financial institution, Ameriprise also offers auto, home and life insurance policies. It sells standard policies at middle-of-the-road rates. Ameriprise recently sold its home and auto [...]

    4 MIN READ Sep. 22, 2020
  • AAA Insurance Review 2020: Auto, Home, and Life

    The American Automobile Association formed in 1902, when fewer than 25,000 cars occupied American roads. Throughout its history, AAA has worked tirelessly to improve safety, producing driver textbooks [...]

    7 MIN READ Sep. 10, 2020
  • Kemper Insurance Review: Auto, Home & Life

    Kemper is a multifaceted insurance holding company that sells auto, home, life and small business insurance products. It offers auto insurance through agents and independent brokers in the state of California, [...]

    6 MIN READ Sep. 3, 2020
  • USAA Insurance Overview

    USAA Insurance is known for its service to the military community and their families. Whether you’re active or former military, an eligible family member, a cadet or midshipman, USAA is available to [...]

    7 MIN READ Aug. 6, 2020
  • The Benefits of Bundling Your Home and Auto Insurance

    When it comes to car and home insurance, bundling your insurance — buying your auto and home insurance from the same insurance provider — can save you money. Most insurance providers offer multi-policy [...]

    5 MIN READ Jun. 17, 2020