what does annual deductible mean in health insurance

An annual deductible in health insurance refers to the amount an individual must pay out of pocket for covered medical services before the insurance plan starts to pay. Once the deductible is met, the insurance company begins to share the cost of covered services with the individual. Typically, plans with lower monthly premiums have higher deductibles, while those with higher monthly premiums have lower deductibles. The deductible can vary depending on the plan and may affect how individuals pay for healthcare costs. Family plans often have both an individual deductible, which applies to each person, and a family deductible, which applies to all family members. Some plans have separate deductibles for certain services, such as prescription drugs. Additionally, all Marketplace health plans pay the full cost of certain preventive benefits even before the deductible is met. Its important to note that deductibles are part of the out-of-pocket maximum, which is the most an individual will pay during a policy period for covered health care services. Different factors, such as the type of health plan and network size, can affect the premium amount. In general, the higher the deductible, the lower the premium, and vice versa.