What is meant by "deductible" in an insurance plan?

A deductible is a specific financial term within an insurance plan that refers to the amount a patient is required to pay out of pocket before their insurance coverage begins to contribute towards the costs of medical expenses. This means that until the deductible amount is met, the patient is responsible for all healthcare costs. For example, if a deductible is set at $1,000, the patient needs to incur that amount in healthcare expenses before the insurance company starts to pay its share of the costs.

This concept is crucial for understanding how insurance plans work, as it influences the financial responsibility of the patient when utilizing healthcare services. Knowing the deductible can help patients better plan for expected healthcare costs and understand how and when their insurance begins to provide financial assistance.

The other options represent different aspects of health insurance but do not accurately describe the deductible. For instance, the total amount of services covered by insurance pertains to the overall benefits provided by the plan, while fixed payments per healthcare visits refer to copayments, which are distinct from the deductible. Lastly, the percentage of costs paid by insurance post-deductible describes the coinsurance feature rather than the deductible itself.