Maximums In health insurance, the deductible is the annual amount you pay for covered expenses before insurance kicks in.
The policyholder “shares” the costs with the insurance plan through coinsurance when the deductible is met.
For instance, an 80/20 plan lets the plan cover 80% of the cost while the policyholder pays 20%.
Your deductible, copays, and coinsurance contributions all contribute to your annual out-of-pocket maximum.
The plan covers all covered costs for the remainder of the year until you reach your maximum out-of-pocket expense.
Deductibles are different for each plan.
The deductible is typically lower the higher the premium you pay, and the higher the premium, the higher the deductible.
