What is a "deductible" in health insurance terms?

A deductible in health insurance refers to the specific amount of money that a policyholder must pay out-of-pocket for covered healthcare services before their insurance provider begins to pay. This means that if a healthcare service is incurred, the insured individual is responsible for paying this initial cost entirely until they meet the deductible threshold set by their plan.

Understanding the deductible is crucial because it directly impacts how much the insured will spend before benefiting from the coverage their insurance provides. Once the deductible is met, the insurance plan typically begins to cover a larger portion of subsequent healthcare costs, although the insured may still be responsible for co-pays or coinsurance.

The other choices do not accurately capture the definition of a deductible. Routine check-up payments, total premiums, and fixed amounts for covered services refer to different aspects of health insurance costs rather than the deductible itself.