What is a deductible in health insurance?

A deductible in health insurance refers to the specific amount an insured individual is required to pay out-of-pocket for healthcare services before their insurance plan begins to provide coverage. This amount must be reached for the benefits of the policy to kick in, meaning that until the deductible is satisfied, the insured must cover these costs fully.

This concept is crucial for understanding health insurance because it impacts how out-of-pocket expenses are calculated and illustrates the financial responsibility of the insured before receiving benefits. For example, if a policy has a deductible of $1,000, the insured would need to pay that amount for eligible medical expenses in a given period before the insurer starts contributing toward those costs.

The other options provided do not accurately define a deductible, focusing instead on other aspects of health insurance. The total amount for premium coverage highlights the recurring payment for maintaining insurance, while fees for doctor's visits refer to co-payments or co-insurance, which are separate from the deductible. Lastly, the maximum an insurance will pay for services pertains to the out-of-pocket maximum or limit, which caps the insured individual's total spending rather than defining what must be paid before coverage initiates.