In health insurance, what is a deductible?

A deductible is the specific amount that a policyholder must pay out-of-pocket for healthcare services before their health insurance begins to cover the costs. This means that in order for insurance benefits to kick in, the insured must first meet this upfront financial requirement. For example, if someone has a deductible of $1,000, they would need to pay the first $1,000 of their medical expenses themselves before the insurance company starts contributing to their healthcare costs.

In contrast, the other options do not accurately define a deductible. The total cost of health insurance premiums refers to the regular payments needed to maintain the policy, which is separate from the deductible. The maximum amount paid by the insurer per claim would typically refer to coverage limits or caps set within the policy, rather than the deductible itself. Fixed payments required for specific procedures are more accurately described as copayments or copays, which are a different concept within health insurance. Therefore, understanding the definition of a deductible is key for policyholders when navigating their healthcare expenses and insurance coverage.