Definition of a deductible?

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Multiple Choice

Definition of a deductible?

The main idea is how a deductible functions in health insurance. The deductible is the amount you must pay out of pocket before benefits start to pay. For example, with a deductible of $1,000, you cover the first $1,000 of covered medical expenses yourself, and once that amount is reached, the plan begins sharing costs (often with coinsurance or copays). The other descriptions refer to different concepts: a fixed monthly charge is a premium, the maximum out-of-pocket limit is the cap on what you pay in a year, and the portion covered by the insurer describes what happens after the deductible is met.

The main idea is how a deductible functions in health insurance. The deductible is the amount you must pay out of pocket before benefits start to pay. For example, with a deductible of $1,000, you cover the first $1,000 of covered medical expenses yourself, and once that amount is reached, the plan begins sharing costs (often with coinsurance or copays). The other descriptions refer to different concepts: a fixed monthly charge is a premium, the maximum out-of-pocket limit is the cap on what you pay in a year, and the portion covered by the insurer describes what happens after the deductible is met.

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