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An amount or period which must be deducted before an insurance payout or settlement is calculated.


1. Able to be taken off of one's tax liability. See: Deduction.

2. In insurance, the amount that a policyholder must pay for a claim before the insurance company will make any payments at all. That is, if an insured event happens, the policyholder is responsible for covering damages up to a certain dollar amount, at which point the insurance company begins coverage. Some insurance policies have an annual deductible; that is, if two insured events happen in a given year, the deductible is only applied once. Other policies have a per event deductible; that is, the deductible applies each time a claim is made. Generally, the higher one's deductible is, the less one pays in premiums on the policy.


A deductible is the dollar amount you must pay for healthcare, damage to your property, or any other insurable claim before your insurance company begins to cover the cost of the bill.

For example, if you have a health insurance policy with an annual $300 deductible, you have to spend $300 of your own money before your insurer will pay whatever portion of the rest of the year's bills it has agreed to cover.

However, in some types of policies, the deductible is per event, not per year. Generally speaking, the higher the deductible you agree to pay, the lower your insurance premiums tend to be. However, the deductible for certain coverage is fixed by the insurance provider. That's the case with Original Medicare.

References in periodicals archive ?
An HDHP is a health plan that satisfies certain minimum annual deductibles and maximum annual out-of-pocket expense requirements under Sec.
Situation 4: The facts are the same as in Situation 1, except that the health FSA and HRA are post-deductible arrangements that only pay or reimburse medical expenses (including the individual's 20% coinsurance responsibility for expenses above the deductible) alter the minimum annual deductible of the HDHP is satisfied.
For example, if a taxpayer's MSA has an end-of-year balance of $2,750 and the health insurance policy annual deductible is $3,000, the individual can spend $950 without paying a penalty: $2,750 minus 60% of $3,000.
Flughafen Kln / Bonn GmbH intends liability insurance (coverage 400 000 000 EUR with an annual deductible of 240 EUR ~000) for the international airport of Cologne / Bonn Konrad Adenauer from 1.1.2017 re vergeben.
The Essential Plan has no annual deductible and offers the same essential benefits as other insurance plans, including free preventive care.
Insurance plans with an annual deductible of at least $1,200 for individuals and $2,400 for families were considered high-deductible.
For employees living outside network areas, the annual deductible would be $150 for an individual, $300 for an individual and one dependent, and $450 for a family, with a 20'percent copayment for prescription drugs and most covered services and annual maximum out-of-pocket expenses of $1,500 for an individual, $3,000 for an individual and one dependent, and $4,500 for a family.
Metropolia staff will be charged an annual deductible defined separately.
According to eHealth Price Index data published today and covering the period from November 15 to December 31, 2014: Shoppers on the first day of open enrollment (November 15, 2014) selected individual plans with an average monthly premium of $317 and an average annual deductible of $3,571, 12% higher and 10% lower, respectively, than shoppers on the final day of the first half of open enrollment (December 31, 2014).
These products typically do not require policy holders to meet an annual deductible, but will not provide coverage beyond specified caps.
By contrast, eHealth s recent Health Insurance Price Index report shows that young adults ages 18-24 who purchased individual coverage through eHealth during the recent nationwide open enrollment period paid an average monthly premium of $146 and had an average annual deductible of $4,955.
* Option 4 provides health care with no employee sharing of premium costs, but has a $1,500 annual deductible; an annual employee copayment of $3,000 per individual, plus 10 percent of the next $7,000 in expenses; and $10,000 maximum out-of-pocket expenses.

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