Deductible: which statement is correct?

• A. The monthly premium.
• B. The copayment per visit.
• C. The amount paid out-of-pocket before insurance covers expenses.
• D. The maximum out-of-pocket limit.

Answer: (C)

Deductible is the amount you pay out-of-pocket before your health insurance starts to pay for your covered services. This isn’t the monthly premium you’re billed to keep coverage, nor is it a fixed copayment for a visit, and it isn’t the yearly cap on what you’d pay in total. After you meet the deductible, you typically share costs with your plan through coinsurance or copays, and there’s also an out-of-pocket maximum that caps how much you’ll pay in a year—once you hit that max, the insurer covers 100% of covered expenses. So the statement that describes the deductible as the amount paid out-of-pocket before insurance covers expenses is the correct one.