What is deductible in health insurance?

 A deductible in health insurance refers to the amount of money that the insured individual is required to pay out of pocket for covered medical services before their insurance plan begins to contribute towards the cost of those services. In other words, it is the initial portion of healthcare expenses that the policyholder must pay before their insurance coverage kicks in.

Here's Deductible how Works

There are some key metrics of an insurance plan that help us to understand clearly about deductible,

Payment Responsibility

When you have a health insurance plan with a deductible, you are responsible for covering your healthcare costs up to the deductible amount.

Coverage Activation

Once you have paid the full deductible amount for covered services within a given period, usually a year, your health insurance coverage starts to apply. After meeting the deductible, you typically only need to pay a copayment or coinsurance for covered services, and the insurance company will cover the rest, subject to any other policy limitations.

Annual Reset

Deductibles often reset annually, meaning you have to meet the deductible again each new plan year before your insurance coverage takes over.

Covered Services

It's essential to understand which services count towards your deductible. Generally, services such as doctor visits, hospital stays, laboratory tests, and prescription drugs are included. However, some preventive services may be exempt from the deductible and covered fully by your insurance.


Deductibles vary widely depending on the insurance plan. Plans with higher deductibles often have lower monthly premiums, while plans with lower deductibles typically have higher premiums. It's a balancing act between how much you're willing to pay each month versus how much you're comfortable paying out of pocket if you need medical care.

Deductibles are a crucial aspect of health insurance plans, as they can significantly affect your out-of-pocket expenses and overall cost of healthcare. Understanding your deductible and how it applies to your insurance coverage is essential for making informed decisions about your healthcare and financial planning.