In the context of medical billing, what does the term "deductible" refer to?

The term "deductible" refers to the specific amount of money that a patient must pay out-of-pocket for healthcare services before their insurance begins to cover any additional costs. This means that the deductible is a threshold that must be met for insurance benefits to kick in, and it is typically set annually. Patients are responsible for paying this amount toward their medical expenses, and only after it has been fulfilled does the insurance plan start contributing to the costs of covered services.

Understanding the deductible is essential for patients and billing specialists alike, as it impacts how much a patient will ultimately owe for their healthcare within a given period. The other choices describe different elements of medical billing but do not accurately define a deductible. For instance, the total amount of a medical bill refers to the total costs incurred, while the percentage of costs covered by insurance pertains to co-insurance. A flat fee charged for each doctor's visit describes co-payment structures, which are distinct from how a deductible functions.