What Is Deductible?
A deductible is the amount you pay out of your own pocket for covered care before your insurance plan starts to pay. In U.S. health insurance, for example, a plan with a $2,000 deductible means you cover the first $2,000 of eligible medical bills each year; after that, the insurer pays its share (often with coinsurance). Many plans still cover preventive services like annual checkups before the deductible is met, as required by the Affordable Care Act.
Why it matters
Your deductible directly drives your premium: higher deductibles usually mean lower monthly premiums but more upfront cost when you need care. Picking the right balance depends on how often you expect to use medical services.
Common confusion
A deductible is not the same as a copay. A copay is a fixed fee per visit; the deductible is the annual threshold you must clear before coinsurance kicks in.
Frequently Asked Questions
Does the deductible reset every year?
Yes. In most U.S. health plans the deductible resets on January 1 (or your plan anniversary), so you start paying the full allowed amount again until you meet it.
Is preventive care subject to the deductible?
Under ACA-compliant plans, in-network preventive care (screenings, vaccinations) is covered without applying the deductible.