Deductible

What is a deductible?

A deductible is the amount a health plan member pays for health care services before health insurance begins to pay.

A deductible is usually a fixed dollar amount and is an out-of-pocket cost to the health plan member.

Depending on the insurance plan, the deductible can range from $0 to thousands of dollars.

Generally, the higher the deductible the lower the health plan premium, and vice versa.

Many health plans pay for certain services, like a checkup or disease management programs, before before the health plan member needs to pay the deductible.

Example

With a $1,000 deductible, the health plan member must pay the first $2,000 of covered services themselves.