What does the term "deductible" refer to in a health insurance policy?

In a health insurance policy, the term "deductible" specifically refers to the out-of-pocket amount that a policyholder must pay for covered health care services before the insurance plan begins to share the costs. Essentially, it is the initial portion of expenses that the insured is responsible for before their insurer starts to cover the remaining costs.

For instance, if a policy includes a deductible of $1,000, the insured needs to pay that amount in eligible medical expenses before their health insurance policy will start covering costs. This mechanism is designed to incentivize insured individuals to be more conscious of their healthcare spending and can help lower the overall cost of insurance by sharing some financial responsibility between the insurer and the insured.

The other options relate to different aspects of health insurance. The amount paid as a premium is the cost to maintain coverage, the fixed percentage refers to coinsurance payments, and the total maximum limit denotes the cap on coverage benefits. Each of these serves a unique purpose in the overall structure of health insurance, but they do not embody the definition of a deductible.