What is a deductible?

• A. Fixed amount per visit
• B. Amount you pay before insurance kicks in
• C. Monthly payment to maintain insurance
• D. Percentage of costs after deductible

Answer: (B)

The most important idea is that a deductible is the amount you must pay out-of-pocket for covered healthcare services before your insurance starts paying. It’s usually set for a year, and until you reach that amount, you cover the full allowed costs (some plans may cover certain preventive services before meeting the deductible). Once the deductible is met, your plan’s cost sharing continues through coinsurance or copays until you reach the out-of-pocket maximum. The other options describe different features: a fixed amount per visit is a copay, a monthly payment to maintain insurance is the premium, and a percentage of costs after the deductible describes coinsurance.