What is a deductible in health insurance terms?

A deductible in health insurance is defined as the amount that an insured individual must pay out-of-pocket for healthcare services before their health insurance plan starts to cover costs. This threshold serves as a form of cost-sharing between the insured and the insurer, requiring individuals to bear some of the expenses upfront before benefits kick in.

For example, if a health insurance policy has a deductible of $2,000, the insured must pay the first $2,000 of their medical bills in a given policy period (usually a year) before their insurance coverage begins to pay for covered healthcare expenses. This mechanism is designed to discourage unnecessary medical visits and promote responsible use of health care resources.

The other options represent different concepts in health insurance. For instance, the percentage of costs after the deductible refers to coinsurance, while a total out-of-pocket expense could relate to a cap or maximum limit on spending, and a flat fee for healthcare visits is typically known as a copayment. These terms are important in the context of understanding health insurance, but they each serve distinct roles separate from that of a deductible.