Final answer:
The term for the amount a consumer pays before insurance covers the rest is known as a deductible. It is a cost-sharing measure to prevent moral hazard by making insured parties partly responsible for their healthcare costs.
Step-by-step explanation:
The term for when the consumer pays a flat dollar amount before the insurance pays for all or part of covered events is a deductible. A deductible is the amount that insurance policyholders must pay out of their own pocket before the insurance coverage starts to pay for any services. After the deductible is met, the policy may require a copayment, which is a flat fee per service, or coinsurance, which is when the policyholder pays a percentage of the cost of the service and the insurance company pays the rest. These cost-sharing measures are designed to reduce moral hazard by having the insured party share in the cost of the insured services.
The term for when the consumer pays a flat dollar amount before insurance pays for all or part of covered events is called a copayment. A copayment is a predetermined fixed fee that the insured individual must pay at the time of receiving medical services, regardless of the total cost of the service.