What is a deductible in health insurance?

The deductible in health insurance is the amount a policyholder is required to pay out-of-pocket for healthcare services before their insurance coverage begins to contribute. This means that before the insurance company starts to cover any eligible expenses, the insured must first meet this specific monetary threshold.

Understanding deductibles is crucial because they impact how much money an individual pays for their healthcare. For example, if a policy has a deductible of $1,000, the insured must pay the first $1,000 of their medical costs before the insurer will start covering eligible expenses.

This is different from other options, which describe different aspects of insurance. Coverage amounts and premiums relate to what the insurer pays and the payments made to maintain the policy, respectively, while the percentage paid by the provider involves cost-sharing after the deductible has been met.