What is the term for the amount that must be paid by the insured before health insurance benefits begin?

The term for the amount that must be paid by the insured before health insurance benefits begin is known as the deductible. This is a specific dollar amount that the policyholder is responsible for covering out-of-pocket before their health insurance plan starts to pay for covered medical expenses.

For instance, if a health insurance policy has a deductible of $1,000, the insured must pay the first $1,000 of their medical expenses. Once this amount is met, the insurance company will begin to cover eligible costs according to the terms of the policy.

This mechanism is designed to share the cost of healthcare between the insured and the insurer, encouraging responsible use of medical services. The premium refers to the amount paid regularly for insurance coverage, while copayment represents a fixed fee paid for specific services at the time of care. Coinsurance involves sharing costs between the insured and the insurer, typically after the deductible has been met.