A deductible is a specific amount that you are required to pay out-of-pocket for medical expenses before your health insurance coverage kicks in. It is a way for insurance companies to limit their financial liability and to encourage individuals to take better care of their health.
When you have a deductible, you will need to pay for certain medical expenses yourself until you reach the deductible amount. Once you have paid the deductible, your insurance coverage will begin to pay for a portion of your medical expenses, depending on the terms of your insurance plan.
Deductibles can vary greatly depending on the insurance plan you choose. Some plans have high deductibles, which can result in lower monthly premiums, while others have low or no deductibles, which can result in higher monthly premiums. It's important to carefully consider your medical needs and financial situation when choosing a health insurance plan with a deductible.
In summary, a deductible is an amount you must pay out-of-pocket for medical expenses before your insurance coverage begins. It is an important factor to consider when selecting a health insurance plan, as it can impact both your monthly premiums and your overall out-of-pocket medical expenses.