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

The term "deductible" in health insurance policies refers specifically to the amount that an insured individual must pay out-of-pocket for medical expenses before their health insurance begins to cover the costs. This means that once the insured has paid this predetermined amount, the insurance provider will start paying for covered medical services according to the terms of the policy.

The deductible is an important feature of many health insurance plans as it helps determine the insured's out-of-pocket expenses and encourages individuals to consider their healthcare costs. It sets a threshold that must be met to activate the insurance benefits, thus impacting how and when benefits are utilized.

Other choices present different aspects related to health insurance but do not accurately define what a deductible is. The percentage of costs paid after the deductible has been met outlines cost-sharing, while the maximum amount the insurer will pay refers to a cap or limit on claims. The fee charged by the doctor is outside the context of how deductibles function within insurance policies.