What is a deductible in health insurance?

A deductible in health insurance refers to the amount that the insured individual must pay out-of-pocket for healthcare services before the insurance plan starts to make payments on their behalf. This means that if a policy has a deductible of $1,000, the insured would need to incur $1,000 in eligible medical expenses before the insurance coverage kicks in. This feature encourages insured individuals to take more responsibility for their healthcare costs and can help to lower insurance premiums.

The other choices represent different aspects of insurance that do not define a deductible. For instance, the maximum amount an insurer will pay for a specific claim refers to the policy limit, which is a separate element of the insurance coverage. Routine check-up fees do not relate to a deductible but rather to the cost incurred for preventive services, which may or may not apply to the deductible depending on the plan terms. Similarly, the cost of insurance premiums refers to the regular payment made to maintain the insurance policy, not to be confused with the deductible that affects out-of-pocket costs for medical care.