Define "deductible" in terms of health insurance.

A deductible in health insurance refers to the specific amount of money that an insured individual is required to pay out of their own pocket for healthcare services before their insurance company starts covering any expenses. This means that if a policyholder incurs medical costs, they must first meet this deductible amount; only after this threshold is reached will the insurance provider begin to contribute to the costs of covered health care services.

For example, if a health insurance plan has a deductible of $1,000, the insured would have to pay that amount in medical expenses before the insurance kicks in to cover any additional costs, which can encourage more responsible use of healthcare services and lower insurance premiums. The clarity surrounding the concept of a deductible is essential for understanding how much financial responsibility falls on the policyholder before receiving benefits from their health insurance plan.