In health insurance, which term describes the amount paid before benefits begin?

• A. Coinsurance
• B. Copayment
• C. Out-of-pocket maximum
• D. Deductible

Answer: (D)

The amount paid before benefits begin is the deductible. It’s the out-of-pocket sum you must cover for covered medical services before your health plan starts paying. Until you meet this amount, you’re typically responsible for 100% of eligible costs. After meeting the deductible, your plan may require you to share costs through coinsurance (a percentage of costs) or copayments (a fixed amount per visit or service). The out-of-pocket maximum is a separate limit—the most you would pay in a policy period, after which the plan covers 100% of covered services. So, the deductible is specifically the amount you pay first, before any plan benefits kick in.