Deductible

Also called: Annual Deductible

In plain English

The amount you must pay out-of-pocket for covered medical services before your insurance starts paying. Most plans reset the deductible annually. Preventive services are typically covered before you meet your deductible under the ACA.

Real-world example

Your plan has a $2,000 deductible. You break your arm and the ER bill is $5,000. You pay the first $2,000 (your deductible), then insurance kicks in and pays its share of the remaining $3,000 based on your coinsurance rate.

Why this matters for your bill

Your deductible is one of the biggest factors in how much you pay for healthcare. High-deductible plans have lower premiums but mean you pay more before insurance helps. Understanding where you are relative to your deductible for the year determines whether insurance will cover your next bill.

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