What is a deductible in health insurance?

A deductible in health insurance refers to the specific amount that the insured must pay out-of-pocket for healthcare services before their insurance begins to contribute. This means that before insurance coverage kicks in to cover additional costs, the insured is responsible for covering expenses up to this predetermined limit.

Deductibles are common in various types of health insurance plans and are crucial for understanding how coverage works, as they can affect the cost of premiums and the overall out-of-pocket expenses for the insured. By having a deductible, insurance plans often lower monthly premiums, which can make them more affordable for individuals who need health coverage.

In contrast, the other options pertain to different aspects of health insurance. Total costs covered refer to the overall expenses handled by the insurance provider after the deductible is met, while the maximum amount payable per visit and copayments indicate specific terms associated with out-of-pocket payments for particular services, rather than the initial out-of-pocket expense before coverage begins. Understanding the purpose and functioning of the deductible is fundamental in navigating health insurance policies effectively.