What is a deductible in healthcare terms?

In healthcare terms, a deductible is the specific amount that a patient must pay out-of-pocket for healthcare services before their insurance plan begins to cover the costs. This annual payment is set by the insurance policy and resets at the beginning of each policy year. Understanding this concept is essential for anyone navigating their healthcare expenses, as it directly affects how much they will ultimately pay for services until they reach the deductible limit. Once this amount is met, the insurance will start sharing the costs, often through co-pays or co-insurance.

The other choices highlight important concepts but do not accurately define a deductible. The total amount charged for healthcare services refers to billing, while the initial fee for visiting a healthcare provider could relate to co-pays or other out-of-pocket expenses. The maximum amount an insurance plan will cover pertains to the overall limit of benefits rather than the patient’s responsibility before the insurance coverage takes effect.