In health insurance, what is the amount you must pay out-of-pocket before coverage begins?

• A. The fixed amount paid by the insured per month
• B. The percentage of costs paid after the deductible
• C. The annual maximum out-of-pocket
• D. The fixed amount paid by the insured before coverage begins

Answer: (D)

The amount described is the deductible—the fixed sum you pay out-of-pocket for covered services before your insurer starts paying according to the plan. It means you cover that initial cost first; after you meet the deductible, you still share costs through things like coinsurance or copays until you reach the plan’s out-of-pocket maximum. The other terms refer to different concepts: the premium is the monthly amount to maintain the plan, coinsurance is the percentage you pay after meeting the deductible, and the annual maximum out-of-pocket is the cap on how much you pay in a year.