Health insurance deductible
The amount you pay for health care each year before insurance starts paying.
Full definition
Your health insurance deductible is the total amount you pay out of pocket each year for covered services before your insurance company begins sharing costs. For example, with a $2,000 deductible, you pay 100% of covered medical costs until you've spent $2,000, then your insurer begins paying its share. Preventive care (like annual physicals) is usually covered before the deductible under the ACA.
Real-world example
Your plan has a $2,000 deductible. You have a minor surgery in March that costs $4,500. You pay the first $2,000. Your insurance pays its share of the remaining $2,500 according to your coinsurance rate.
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The amount you pay for health care each year before insurance starts paying.
Related terms
- Out-of-pocket maximum
The most you'll pay in a year before insurance covers 100% of costs.
- HSA (Health Savings Account)
A tax-advantaged account for medical expenses, available with high-deductible health plans.