Final answer:
Rachel's health policy stipulates that she must pay the first $300 of covered expenses as a c) deductible before the insurance pays its benefits. Deductibles are payments policyholders make out-of-pocket prior to their insurance covering the rest of the eligible expenses.
Step-by-step explanation:
Rachel owns a major medical health policy which requires her to pay the first $300 of covered expenses each year before the policy pays its benefits. This amount that Rachel must pay is known as the policy's deductible.
A deductible is an amount that insurance policyholders must pay out-of-pocket before the insurance company begins to pay its share of covered expenses.
By contrast, a copayment is a flat fee that the policyholder pays when receiving services, and the out-of-pocket maximum is the most a policyholder would have to pay for covered expenses in a policy period before the insurance company covers 100% of the covered expenses.
Lastly, the premium is the amount the policyholder pays periodically to maintain the health insurance policy. In Rachel's case, the $300 she is required to pay before receiving benefits from her medical health policy categorically defines a deductible.