What term refers to the amount paid out of pocket before insurance covers the remaining costs?

• A. Premium
• B. Co-insurance
• C. Deductible
• D. Deductable/co-pay

Answer: (D)

The key idea is how insurance cost sharing works: the amount you pay out of pocket before the plan starts paying the rest is the deductible. This is the threshold you must meet first, after which the insurer begins to share costs according to the plan’s rules. A co-pay is a fixed fee you pay for a service at the time you receive it, which is separate from the deductible. Premium is the regular payment to maintain coverage, not tied to a single claim. So, the term that fits the description—“the amount paid out of pocket before insurance covers the remaining costs”—is the deductible. The combined phrase in the option isn’t a standard single term.