What term describes the amount a patient must pay out-of-pocket before their insurance coverage begins?

The term that describes the amount a patient must pay out-of-pocket before their insurance coverage begins is known as a deductible. A deductible is a predetermined amount specified in an insurance policy that the insured must pay before any benefits are payable by the insurer. For example, if a plan has a $1,000 deductible, the patient must pay the first $1,000 of their medical expenses before the insurance company starts to cover costs.

In a typical health insurance plan, the deductible is important because it sets the initial financial responsibility for the insured person. After meeting the deductible, the insurance coverage will kick in, and the policyholder may then be responsible for co-payments or co-insurance based on the terms of their specific plan. Understanding the deductible is crucial for patients to anticipate their out-of-pocket costs for healthcare services.