What does it mean for a policyholder to meet their deductible?

Meeting a deductible means that the policyholder has incurred enough qualifying expenses that equal the set amount specified in their insurance policy before the insurer starts to pay benefits. This threshold represents the amount the insured individual must pay out-of-pocket for covered services before insurance coverage kicks in and begins to share the costs of remaining expenses. This concept is central to how many health insurance policies operate, as understanding the deductible helps the insured manage their healthcare costs effectively.

The deductible acts as a financial barrier that encourages individuals to be proactive about their healthcare spending while also protecting the insurer from minor claims, which can help maintain lower premiums for all policyholders. Overall, recognizing what it means to meet a deductible is critical for proper financial planning and use of health services within the policy terms.