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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 ?
Most deductibles are on an annual basis; the most common annual deductible amounts are $100, $200, or $250.
Up to 100% of the federal poverty level: no premium, no annual deductible, $1 to $3 per prescription copayment, and no coverage gap
The annual deductible is $150 per individual or $300 per family for E-5 and above, or $50 per individual or $100 per family for E-4 and below.
Even without any change in Medicare, however, many are confused about the purchase of private supplemental (Medigap) insurance for what is not covered by Medicare - the annual deductible, copayment of 20 percent of doctors' bills, outpatient prescription drugs, certain preventive screening tests, a portion of long-term hospital stays, and coinsurance for home nursing care,
8 percent in 1987, except for 1982 when the annual deductible amount increased.
In fact, the number of employees with a $1,000 or greater annual deductible in their health plans has tripled in the past six years.
Specifically, Kaiser said, less than two-thirds (63 percent) of non-elderly households with incomes above the federal poverty level have sufficient liquid financial assets to cover a midrange annual deductible of $1,200 for an individual or $2,400 for a family.
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).
Out-of-pocket costs include a health plan's annual deductible, which is the amount before insurance starts paying, as well as any copayments and cost-sharing.
There is a $135 annual deductible for physician charges and other outpatient services, after which the beneficiary pays 20 percent of the allowable charges.
For a person with a chronic condition who is on maintenance medications, those savings could potentially offset the premium even if his annual deductible were never met, and thus no insurance benefits were ever paid.
The contribution limit for an individual eligible for calendar-year 2005, is the lesser of (1) the HDHP annual deductible (minimum of $1,000 for self-only coverage and $2,000 for family coverage) or (2) $2,650 for self-only coverage and $5,250 for family coverage (Rev.

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