California Life and Health Insurance Practice Exam 2025 – Complete Test Prep

Question: 1 / 400

How does a deductible work in health insurance?

The amount a policyholder pays for small claims

The out-of-pocket payment before insurance starts covering expenses

The deductible in health insurance refers to the amount that the policyholder must pay out-of-pocket for healthcare services before the insurance begins to cover any costs. This means that if a policyholder incurs medical expenses, they will need to pay up to their deductible amount prior to the insurer stepping in to cover the remaining eligible costs. Once the deductible has been met, the insurance company will start to pay a share of the covered services based on the terms of the policy.

Understanding how the deductible functions is crucial, as it impacts the overall cost of healthcare services and the way consumers plan for medical expenses throughout the year. It is a key part of many health insurance policies and is designed to help mitigate the costs of premium payments while encouraging policyholders to be more cost-conscious in their healthcare decisions.

Get further explanation with Examzify DeepDiveBeta

A percentage of expenses covered by insurance

A flat fee paid for each doctor visit

Next Question

Report this question

Download California Life and Health Insurance Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy