Which of the following best describes the term "deductible" in health insurance?

The term "deductible" in health insurance specifically refers to the amount that a policyholder must pay for covered health care services before their health insurance plan begins to pay. This means that the deductible is a threshold amount; until the insured person meets this amount through qualifying medical expenses, the insurance provider will not contribute financially to their medical claims.

Understanding the deductible is crucial for policyholders as it directly affects their out-of-pocket costs and overall financial planning when utilizing healthcare services. Once the deductible is met, the insurance typically starts to share the costs through copayments or coinsurance, which can lead to more predictable healthcare expenses.

The other options reflect different aspects of health insurance coverage but do not accurately define a deductible. For example, one option refers to the total amount an insurance plan will pay, while another pertain to the percentage of costs covered by the plan. These terms describe other components of an insurance policy rather than the specific definition of a deductible. Understanding these distinctions is important for navigating health insurance effectively.