Illinois Health Insurance Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

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What is a deductible in health insurance?

The amount an insured pays for premiums each month

The amount a policyholder must pay out-of-pocket before the insurance starts to pay

In health insurance, a deductible is defined as the amount of money that a policyholder must pay out-of-pocket for healthcare services before the insurance coverage begins to contribute to the costs. For instance, if a health plan has a $1,000 deductible, the policyholder must incur $1,000 in healthcare expenses before their insurance provider begins to pay for covered services.

This system helps insurance companies manage costs and encourages policyholders to be aware of their healthcare spending. It’s important to differentiate this from premiums, which are the regular payments made to maintain coverage, or copayments, which may require a specific payment at the time of a doctor's visit. Understanding how deductibles work is crucial for policyholders to effectively manage their healthcare expenses and make informed decisions about their insurance options.

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The fixed amount for specific services at the time of visit

The maximum amount payable by the insurance company per year

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