What is the set amount you pay for covered medical services out-of-pocket before your insurance plan begins to pay?

• A. Copay
• B. Premium
• C. Deductible
• D. Coinsurance

Answer: (C)

The set amount you pay for covered medical services out-of-pocket before your insurance plan begins to pay is the deductible. It’s the initial amount you must cover each policy year before the plan starts contributing. Once the deductible is met, you may still share costs through coinsurance, and some services might have fixed copays. A copay is a specific fee paid at the time of service, regardless of total charges. A premium is the regular payment you make to maintain coverage, not tied to a particular bill. Coinsurance is the percentage of costs you pay after the deductible has been met.