Final answer:
The correct answer is A) Deductible. It is the amount paid out-of-pocket before insurance coverage starts paying for the covered expenses. Copayments and coinsurance are different types of cost-sharing that come into play after the deductible is met or at the time of service.
Step-by-step explanation:
The first portion of a covered major medical insurance expense that the insurance is required to pay is called the deductible. This is the set amount that policyholders must pay out-of-pocket before their insurance coverage kicks in to cover the remaining costs. Unlike a copayment, which is a fixed fee paid at the time of receiving a service, or coinsurance, which is the percentage of costs that the insured must cover even after hitting the deductible, the deductible must be paid first before the insurance company begins to pay its share of the expenses.