What is the main purpose of a deductible in health insurance?

A deductible in health insurance primarily functions as the amount that a policyholder must pay out of pocket for healthcare services before their insurance coverage begins to contribute. This requirement means that individuals must incur a certain level of expenses themselves before the insurance provider starts to cover eligible costs.

The purpose of a deductible is to share costs between the insured and the insurer, promoting responsible use of healthcare services. By having a deductible, individuals are encouraged to consider the necessity of the care they seek, as they are responsible for initial expenses. This balance between insured costs and out-of-pocket expenses helps to control overall healthcare spending and can lead to lower premiums, as the insurance company is not immediately liable for minor expenses.

In this context, while the other options relate to different aspects of health insurance, they do not accurately capture the specific function of a deductible. Understanding the role of a deductible is crucial for navigating health insurance plans and anticipating potential healthcare costs.