What does the term "deductible" refer to in health insurance?

The term "deductible" in health insurance refers to the amount of money that an insured individual must pay out-of-pocket for healthcare services before their insurance coverage begins to pay. In other words, a deductible is the initial expense that the policyholder is responsible for accumulating in a policy year before the insurer starts to contribute towards the costs of medical services.

Once the deductible is met, the insurance company will typically begin to share the costs of further medical expenses, often in conjunction with coinsurance or copayment structures. This means that the insured may then only need to pay a percentage of the remaining costs or a fixed amount for services, rather than being responsible for the entire expense.

The other options refer to different aspects of a health insurance policy. The maximum limit of coverage pertains to the cap on what the insurer will pay for care. The total premium payment for the year is the amount paid for insurance coverage itself, and coinsurance percentage is the share of costs that the insured pays after the deductible has been met. Each of these terms is distinct and serves a different function within health insurance contracts.