Final answer:
The amount of money that a patient must pay before the insurance carrier begins to pay is known as a deductible. It is a form of cost-sharing that encourages policyholders to minimize unnecessary use of medical services. This term is distinct from co-payment, premium, and co-insurance, which all relate to different aspects of payment responsibilities in insurance policies.
Step-by-step explanation:
The correct answer to the question is C. Deductible.
A deductible is an amount the insurance policyholders must pay out of their own pocket before the insurance coverage starts paying anything. This is in contrast to a co-payment, which is a flat fee for a specific service, and a premium, which is the regular payment made to maintain the insurance policy. Co-insurance is a portion of the bill that the insured pays after the deductible has been met, which is usually a percentage of the total cost.
Having deductibles, co-payments, and co-insurance in an insurance plan helps decrease moral hazard by ensuring that individuals have a financial stake in the healthcare services they use. As a result, they may be more inclined to make cost-effective decisions and unnecessary services could be reduced.