What is the primary function of a deductible in a health insurance plan?

A deductible in a health insurance plan serves the primary function of requiring an upfront payment for healthcare services before the insurance coverage begins to pay for those expenses. This means that policyholders must pay a certain amount out of pocket for their medical costs, which is specified in their plan, before the insurer takes over payment for most services. This structure is designed to help share the cost burden between the insurer and the insured, ultimately encouraging consumers to make thoughtful healthcare choices while also controlling insurance costs.

This approach helps manage overall healthcare usage, as patients may consider their treatment options more carefully when they know they are responsible for initial costs. It is also a common feature in many types of insurance plans, providing a balance between coverage and cost to both the insurer and the insured.