Final answer:
A deductible is an amount an insurance policyholder pays before insurance starts covering healthcare costs, intended to prevent overutilization of services.
Step-by-step explanation:
In the healthcare industry, a deductible is an out-of-pocket cost that an insurance policyholder needs to pay before their insurance coverage starts to pay for any services. For instance, if the policyholder's deductible is $1,000, they are responsible for the first $1,000 of health expenses incurred in that policy period; afterwards, the insurer begins to share or cover the costs. Deductibles are a common feature of many insurance policies, designed to encourage responsible use of health services and to reduce the likelihood of overutilization, a problem sometimes referred to as moral hazard.