Deductible

A deductible is the amount you must pay each year before the insurance company will start to pay on your claims. In health insurance your deductible is typically reset every calendar year. For instance, if you were to have a claim which cost you $4500, and you have a deductible of $1000 with 100% coverage after the deductible, the insurance company will pay $3500 to the provider; you will be responsible for the remaining $1000 to the provider. If it was still in the same calendar year and you had another claim, the insurance company will typically be responsible for the full amount of that claim.