What is a deductible in health insurance?

A deductible in health insurance is defined as a predetermined amount that a patient must pay out-of-pocket for covered healthcare services before their insurance plan begins to pay. This means that, for example, if an individual has a deductible of $1,000, they will need to pay the first $1,000 of their medical costs themselves. Only after reaching this amount will the insurance company start contributing to the costs of further medical services, according to the terms of the insurance policy.

This concept is essential in understanding how health insurance operates, as it encourages patients to be mindful of their healthcare spending and can impact their decisions about seeking medical care. The other options describe different aspects of health insurance but do not accurately define what a deductible is. For instance, a percentage of the insurance claim paid by the patient refers to coinsurance, and a fixed amount for each visit typically describes a copayment. An additional charge for long hospital stays does not pertain to the concept of a deductible at all.