Which term describes a fixed dollar amount that must be paid by the insured for charges of providers once a year in addition to the premium?

Which term describes a fixed dollar amount that must be paid by the insured for charges of providers once a year in addition to the premium?

• A. Coinsurance
• B. Deductible
• C. Primary Insurance
• D. Medicare

Answer: (B)

The main idea is how health insurance shares the cost with you before benefits kick in. A deductible is a fixed dollar amount you must pay out of pocket for covered medical services each year. Until you meet that amount, you’re responsible for the costs, and once you reach it, the insurance typically starts paying according to the plan terms. This amount is separate from the monthly premium you pay to maintain the policy. After the deductible is met, you might still pay a portion of costs through coinsurance, which is a percentage of the charges, not a set dollar amount. The other terms don’t describe this upfront, fixed yearly payment: coinsurance is a percentage, primary insurance isn’t a cost term, and Medicare refers to a government program.

The main idea is how health insurance shares the cost with you before benefits kick in. A deductible is a fixed dollar amount you must pay out of pocket for covered medical services each year. Until you meet that amount, you’re responsible for the costs, and once you reach it, the insurance typically starts paying according to the plan terms. This amount is separate from the monthly premium you pay to maintain the policy. After the deductible is met, you might still pay a portion of costs through coinsurance, which is a percentage of the charges, not a set dollar amount. The other terms don’t describe this upfront, fixed yearly payment: coinsurance is a percentage, primary insurance isn’t a cost term, and Medicare refers to a government program.