Define "deductible" in health insurance.

A deductible in health insurance refers to the amount a policyholder must pay out of pocket for healthcare services before their insurance plan starts to cover costs. This means that if an individual has a deductible of, for example, $1,000, they are responsible for paying that amount for their medical expenses before the insurance will begin to contribute. Deductibles can vary significantly between different insurance plans and can also apply to specific types of coverage, such as individual or family plans.

This concept is an essential part of understanding health insurance because it affects how much individuals need to budget for their healthcare expenses. Once the deductible is met, insurance typically covers a larger portion of the costs, though there may still be copayments or coinsurance involved, which are different from the deductible. The nature of deductibles is pivotal for insured individuals to plan their healthcare expenses wisely, as it directly influences their out-of-pocket costs before receiving financial assistance from their insurance provider.