What is a "deductible" in health insurance?

A deductible in health insurance is defined as the initial out-of-pocket expense that a policyholder must pay for healthcare services before the insurance coverage starts to pay. This means that when you receive medical care, you are responsible for covering the costs up to a certain amount, known as the deductible, and only after reaching that threshold will the insurance begin to cover costs according to the policy terms.

For instance, if your plan has a deductible of $1,000, you would need to pay the first $1,000 of your medical expenses out-of-pocket before your insurer starts to contribute to your healthcare costs. This mechanism not only helps to reduce the number of small claims that insurers have to process but also encourages policyholders to be more mindful about their healthcare spending.

The other options describe different concepts related to health insurance. The total amount an insurance policy will cover refers to the policy limits rather than deductibles. The maximum limit an insurer will pay for a claim refers to the coverage limits set by the insurance provider, and a fee for visiting a healthcare provider typically refers to a copayment, which is a separate cost structure that applies after the deductible has been met. Understanding these distinctions is crucial in navigating health insurance policies effectively.