Washington State Insurance Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

In terms of health insurance, what does the term "deductible" refer to?

The amount the insured pays before the insurance company pays

The term "deductible" refers specifically to the amount that the insured individual is required to pay out-of-pocket for healthcare expenses before their insurance plan begins to contribute its share of coverage. This means that if a health insurance policy has a deductible of $1,000, the insured must pay that amount in eligible medical expenses before the insurance provider starts to cover additional costs.

Deductibles serve as a mechanism for sharing costs between the insured and the insurer, encouraging responsible use of healthcare services. The concept is an important part of health insurance policies, as it impacts how much the insured ultimately pays for medical care each year. Understanding how deductibles function can help individuals better manage their healthcare expenses and budgeting for medical costs.

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The amount paid for every visit

The maximum out-of-pocket expense

The portion covered by governmental programs

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