Define deductibles in the context of health insurance.

In the context of health insurance, deductibles refer to the specific amounts that an insured individual must pay out of pocket for healthcare services before their insurance coverage kicks in. This means that until the deductible amount is reached, the insurer will not cover any costs for eligible medical services. Once the deductible is met, the insurance policy typically begins to share the costs of healthcare services through coinsurance or copayments, allowing the insured to pay only a portion of medical expenses for the remaining policy year.

Understanding the role of deductibles is crucial for individuals as they can significantly impact out-of-pocket costs. While monthly premiums, fees for medical advice, and total coverage amounts are important elements of health insurance policies, none of these accurately define what deductibles are or how they function within a health insurance framework.