Simply put, the deductible is the amount you pay for covered health care services BEFORE your insurance plans begins to pay. For example, if your insurance plan has a $2,500 deductible, you will pay that $2,500 out of pocket BEFORE your insurance begins to kick in. Depending on if you’re on an individual plan or a family plan, this dollar amount will vary.

Once your deductible is met, in most cases, you will only pay a copayment or coinsurance for additional covered services. Your insurance carrier pays the rest. 

A lot of times plans will pay for preventative services such as checkups or disease management programs before your deductible is met. 

Some plans have separate deductibles for certain services, such as prescription drugs. 

If you’re on a family plan, be sure to check if you have an aggregate or embedded deductible structure to your plan. 

In general, plans with lower monthly premiums have higher deductibles. Plans with higher premiums usually have lower deductibles. 

Sources

Healthcare.gov