Question

A patient must pay

$
400
$400 per year for medical expenses before the insurance company will begin to cover any expenses. Which of the following terms describes this payment?

A. premium

B. fee-for-service

C. co-payment

D. coinsurance

E. deductible

Answer 1

The payment described is a deductible, which is the amount the policyholder must pay before insurance coverage starts.

Step-by-step explanation:

The payment described in the question is called a deductible.

A deductible is the amount that the insurance policyholder must pay out of their own pocket before the insurance coverage kicks in. In this case, the patient must pay $400 per year before the insurance company will start covering any expenses.