Which statement is true about the deductible?

• A. It is the amount paid out-of-pocket before insurance begins paying.
• B. It is the fixed amount paid at the point of service.
• C. It is the monthly premium.
• D. It is the percentage of costs paid after deductible.

Answer: (A)

The deductible is the amount you must pay out-of-pocket before your health plan starts paying for covered services. It’s not a fixed copayment at the time of service, nor is it the monthly premium you pay to maintain coverage. It’s also not the percentage you pay after meeting the deductible (that would be coinsurance). So you cover eligible expenses yourself up to the deductible amount, and once that threshold is reached, the plan begins contributing according to its cost-sharing terms.