What does a deductible represent in health insurance?

• A. A fixed amount paid for every visit
• B. A fixed monthly premium
• C. The amount you pay before coverage begins
• D. A percentage of every service cost

Answer: (C)

A deductible is the amount you must pay out-of-pocket for covered medical services before your health insurance starts paying. For example, if your deductible is $1,500, you’d cover the first $1,500 of eligible costs yourself; after that, the plan begins sharing costs through coinsurance or copays until you reach the out-of-pocket maximum. The fixed monthly amount you pay to stay insured is the premium, not the deductible, and a fixed amount per visit or a percentage of costs describes copays and coinsurance, respectively. Some plans also cover certain preventive services without requiring you to meet the deductible first.