Deductible

The deductible is the amount of a covered expense that you (the insured person(s)) pay out-of-pocket before the insurance company makes any payments.

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Deductibles are common in health insurance plans.

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Deductibles apply to you and to any dependents covered under the plan.

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E.g. $50 per person per year, or $100 per family per year, or $5 for each drug prescription. Or a combination of these.

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Deductibles are similar to Coinsurance in that they are designed to make the insured person(s) participate and share in the cost, and help to keep health care plans sustainable and affordable for insureds over the long term.