Commission for Case Manager Certification (CCMC) Exam 2025 – 400 Free Practice Questions to Pass the Exam

The term "deductible" in insurance refers to the amount that an individual must pay out-of-pocket for covered services before the insurance company will begin to pay for claims. This means that until the deductible is met, the insured party is responsible for all medical expenses. Once the deductible is satisfied, the insurance coverage will kick in, helping to cover further costs according to the terms of the policy.

For example, if a health insurance plan has a deductible of $1,000, the insured has to pay that amount for their medical expenses before the insurance company starts contributing to the costs of additional services. This mechanism is designed to share the financial burden of healthcare costs between the insurer and the insured, encouraging responsible usage of medical services.

The other choices pertain to different aspects of insurance. The total premium is the amount paid periodically for coverage, co-payment refers to a fixed amount the insured pays for specific services, and the portion of costs not covered by insurance relates to out-of-pocket expenses that remain after insurance benefits are applied. Each of these terms plays its own role in understanding insurance policies, but they do not specifically define a deductible.