What does the term "deductible" refer to in health insurance?

The term "deductible" in health insurance specifically refers to the amount a policyholder must pay out of pocket for healthcare services before their health insurance begins to pay. This is a common feature in many health insurance plans and is designed to share costs between the insurer and the insured. For example, if a plan has a $1,000 deductible, the policyholder must incur $1,000 in eligible medical expenses in a given year before the insurance company will start covering further costs.

This structure encourages policyholders to be more mindful of healthcare services and expenses, as they will be responsible for initial costs. After the deductible is met, the insurance will typically cover a larger portion of the costs, with the policyholder usually still responsible for co-pays or co-insurance depending on the specific terms of their policy.

The other options provide definitions related to health insurance but do not accurately describe the concept of a deductible. The total cost of premiums reflects the money paid for the policy itself and does not factor into out-of-pocket expenses for healthcare services. The percentage a company pays in claims is related to co-insurance, which occurs after the deductible is met. Finally, the amount charged by healthcare providers for each visit pertains to provider billing rather than the