What does the term deductible refer to in health insurance?

The term "deductible" in health insurance refers specifically to the amount that an insured individual must pay out-of-pocket for healthcare services before the insurance company starts to pay its share of the costs. Once the deductible is met, the insurance policy will generally cover a larger portion of the expenses as defined by the terms of the plan. This concept is fundamental in understanding health insurance plans because it directly impacts how much a person will spend before receiving benefits from their insurance policy.

Understanding this term is crucial for individuals as it helps them assess potential healthcare costs and budget for medical expenses effectively. The other concepts mentioned in the choices contribute to the overall financial responsibility of an insured person but describe different aspects of health insurance, such as caps on spending or the structure of cost-sharing after the deductible has been met.