How does a deductible work in a health insurance plan?

A deductible is the amount you pay out of pocket for covered medical services before your insurance company starts sharing costs. For example, if your deductible is $1,500, you pay the first $1,500 of covered medical bills yourself each year. After you meet that amount, your insurance kicks in and typically covers a percentage of costs through coinsurance, or covers everything if you have a copay structure. Some services, like preventive care or doctor visit copays, may be covered before you meet your deductible depending on your plan. The deductible resets each plan year, usually January 1st. Generally, plans with lower monthly premiums tend to have higher deductibles, and vice versa.