In a health insurance policy, what does the deductible refer to?

The deductible in a health insurance policy refers to the amount that the insured must pay out of pocket for healthcare services before the insurance company begins to cover the costs. This means that until the deductible is met, the insurer does not provide coverage for services, leaving the insured responsible for those initial expenses. Once the deductible is satisfied, the insurance will start to pay its share for covered services, often in conjunction with other cost-sharing elements like copayments and coinsurance.

In relation to the other choices, the total amount that insurance will not cover does not accurately describe the deductible, as it typically refers to exclusions or limits in a policy. The fixed dollar amount the insured pays for a covered service describes a copayment, which occurs after the deductible is met, not before. Lastly, the maximum out-of-pocket expense for the year refers to the total limit on how much the insured would have to pay, combining deductibles, copayments, and coinsurance throughout the policy year, which is distinct from the deductible itself.