Final answer:
The annual deductible is the pre-set sum a TRICARE beneficiary must pay for eligible outpatient services before insurance coverage kicks in.
Step-by-step explanation:
a) Annual Deductible The annual amount that a beneficiary must pay for covered outpatient services before TRICARE begins to pay for or reimburse those services is known as the annual deductible. This is a predetermined amount set by the insurance policy that the policyholder is required to pay out-of-pocket before any claims are covered by the insurer. Once the deductible is paid, TRICARE may cover the remaining costs, subject to any applicable co-payment or coinsurance requirements. It's important to understand that a co-payment, or co-pay, is a fixed fee paid by the beneficiary each time a medical service is accessed, and coinsurance is often a percentage of the service cost that the beneficiary must pay. Unlike these, the annual deductible is not a fee for service or a proportional cost-sharing arrangement but rather a threshold amount for the insurance plan to start covering expenses.
The annual amount that a beneficiary must pay for covered outpatient services before TRICARE begins to pay for or reimburse for those services is the Annual Deductible.A deductible is the maximum amount that the policyholder must pay out-of-pocket before the insurance company starts covering the costs. In this case, TRICARE requires the beneficiary to meet the annual deductible before it begins to pay for or reimburse for covered outpatient services.For example, if the annual deductible is $500, the beneficiary must pay the first $500 for covered outpatient services, and then TRICARE will start covering the costs. It is important to note that deductibles may vary depending on the specific TRICARE plan.