Which of the following best describes "deductible" in health insurance?

The term "deductible" in health insurance refers to the amount that a policyholder must pay out-of-pocket for covered healthcare services before their health insurance begins to pay for those costs. This means that if an individual incurs medical expenses, they are responsible for covering those costs up to the specified deductible amount. Once that threshold is met, the insurance provider generally starts to contribute towards the medical expenses, which often involves co-pays or coinsurance for further treatments or services.

This concept is fundamental to understanding how cost-sharing works within health insurance policies. It serves to encourage responsible use of healthcare services by making insured individuals more mindful of their healthcare expenditures up to the deductible limit.

The other choices do not accurately define a deductible in health insurance. The percentage of costs the insured must pay refers to co-insurance, the total premium is the cost of maintaining the insurance policy, and the cap on benefits refers to an overall limit on what the policy will pay for covered services. These concepts are distinct from the deductible and clarify how different parts of health insurance function.