Which of the following best describes the term 'deductible' in health insurance?

The term 'deductible' in health insurance refers specifically to the amount that a patient must pay out-of-pocket for healthcare services before their insurance coverage kicks in. This means that when a policyholder incurs eligible medical expenses, they are responsible for paying up to a predetermined amount, known as the deductible, before the insurer starts to pay its share of the costs.

For example, if a health insurance plan has a deductible of $1,000, the policyholder must pay this amount for medical services each year before the insurance company begins to reimburse for further expenses. This structure is designed to encourage individuals to be mindful of their healthcare spending while also reducing the insurance company’s risk and costs.

The other options describe different aspects of health insurance but do not accurately define a deductible. The maximum amount an insurance company will pay pertains to the policy's coverage limits, while a patient's cost-sharing percentage relates to co-insurance, and the total cost of a medical service refers to the complete bill for the service, not the deductible itself.