How is a deductible defined in the context of health insurance?

A deductible in the context of health insurance is the amount that an insured individual is required to pay out-of-pocket for healthcare services before their insurance plan begins to cover costs. This means that an individual must pay all their medical expenses up to the deductible amount before the insurance provider starts to help with any further costs. This mechanism is designed to share healthcare costs between the insured and the insurer, encouraging individuals to utilize healthcare services judiciously.

The other options refer to different aspects of health insurance. The monthly payment for insurance is known as a premium and is separate from any deductible obligation. Fixed payments made for each doctor visit are known as copayments, which are structured differently from the deductible as they apply after the deductible may have been met. Lastly, the total out-of-pocket expenses for the insured encompass all costs, including the deductible, premiums, and copayments, which is a broader financial concept unrelated to the specific definition of a deductible.