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Deductible

A deductible is the amount of money you pay before your insurance begins covering costs. It is usually a specified dollar amount (i.e., you pay the first $500, then your insurance begins to cover costs), or a percentage of the claim amount (i.e., you pay 20% of the claim, and then your insurance begins to cover costs). The higher your deductible, the lower your premium usually is.

Other Glossary Terms

• Coinsurance
• Copayment or copay
• Deductible
• Health Maintenance Organization
• Health Savings Account or HSA
• High Deductible Health Plan or HDHP
• HMO
• In-Network
• Out-of-pocket maximum or out-of-pocket limit
• PPO
• Preferred Provider Organization or PPO