Which term best defines the expenses that an insured may incur before their insurance begins to pay?

The term that best defines the expenses that an insured may incur before their insurance begins to pay is the deductible. A deductible is the specific amount of money that the insured is required to pay out-of-pocket for covered healthcare services before their insurance plan starts to pay. This means that the insured must cover these costs entirely, and only after meeting the deductible does the insurance coverage activate to cover additional eligible expenses.

For example, if a health insurance policy has a $1,000 deductible, the insured must pay the first $1,000 of their medical bills themselves. After this threshold is met, the insurance company will begin to pay its share of the costs incurred.

The other options relate to different aspects of health insurance. Premium refers to the regular payment made to maintain the insurance policy, coinsurance is the percentage of costs that the insured pays after their deductible has been met, and out-of-pocket maximum is the highest amount an insured will spend in a policy period before the insurance covers 100% of the remaining costs. Each of these plays a role in the overall insurance payment structure, but only the deductible specifically addresses initial expenses that must be covered by the insured before the insurance provides financial assistance.