Deductible.
In plain English
Until you've spent your deductible, you're paying the insurer's negotiated rates yourself. After you hit it, the plan starts sharing costs through coinsurance or copays until you reach the out-of-pocket maximum. Many plans cover preventive care before the deductible.
01Why it matters
It's the number that decides how much of an unexpected bill is yours before insurance helps, and it's the main trade-off behind a low-premium plan.
02The math, step by step
Your deductible is $2,000. An MRI billed at $1,400 (negotiated rate) is yours to pay. Your next $600 of care is yours too. After that, the insurer starts paying its percentage.
Illustrative example. The amounts here are hypothetical, chosen to show how the math works, not real quoted rates or figures.
03What this is NOT
The deductible is not your premium, and it is not the most you can spend in a year. That's the out-of-pocket maximum.
Plain-English answers from our glossary. Receipts included. Never advice.
Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice