What does the deductible refer to in a health insurance policy?

What does the deductible refer to in a health insurance policy?

• A. Amount insured pays before benefits begin
• B. Amount insurer pays after deductible
• C. Co-insurance percentage
• D. Maximum out-of-pocket

Answer: (A)

The deductible is the amount you must pay out of pocket for covered medical services before your health insurer starts paying benefits. For example, if your deductible is $1,000, you’re responsible for the first $1,000 of eligible expenses. After you’ve met the deductible, the plan begins to share costs through coinsurance or copays, and you continue until you reach the plan’s maximum out-of-pocket limit. The deductible is not the amount the insurer pays after meeting it, nor is it the coinsurance percentage or the maximum out-of-pocket itself. In many plans, preventive services may be covered before the deductible is met.

The deductible is the amount you must pay out of pocket for covered medical services before your health insurer starts paying benefits. For example, if your deductible is $1,000, you’re responsible for the first $1,000 of eligible expenses. After you’ve met the deductible, the plan begins to share costs through coinsurance or copays, and you continue until you reach the plan’s maximum out-of-pocket limit. The deductible is not the amount the insurer pays after meeting it, nor is it the coinsurance percentage or the maximum out-of-pocket itself. In many plans, preventive services may be covered before the deductible is met.