The amount of money that must be paid by the patient for medical services before the policy begins to pay is the:

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

Answer: (A)

The deductible is the amount you must pay out of pocket before your health plan starts sharing the cost of covered services. It’s usually an annual amount, and once you’ve paid that much, your plan begins paying according to its other cost-sharing rules. A premium is the regular payment you make just to keep the policy active, regardless of use. A copayment is a fixed amount you pay for a specific service at the time you receive it. Coinsurance is the percentage of the allowed cost you pay after the deductible has been met.