Easy Guide to Understanding Your Health Insurance: Deductible vs. Copay
Trying to understand health insurance terms can feel like reading a foreign language. Two of the most common and important terms that determine your out-of-pocket costs are the Deductible and the Copay.
While both are ways you share the cost of healthcare with your insurance company, they work very differently and apply at different times.
1. The Deductible: Your Annual Health Care Hurdle
Think of your deductible as an annual financial hurdle you must clear before your insurance benefits fully kick in.
| Feature | Deductible |
| What It Is | A set dollar amount you must pay entirely out-of-pocket for covered medical services each year. |
| How It Works | You pay 100% of the cost for most major services (like surgery, hospital stays, or complex scans) until the total amount you’ve paid reaches this dollar amount. |
| When You Pay It | At the beginning of the year, until the full amount is met. |
| Example |
