A deductible is the amount you must pay out-of-pocket each year for health-related expenses before your insurance policy begins to pay.
Deductibles are common in PPOs for health care services received outside the PPO network.
If you have Medicare, you will most likely have to pay a deductible for medical services and a separate deductible for medications under Medicare Part D.
There is a wide range of deductibles – anywhere from none to $10,000 a year or more. And, if you have a large annual deductible, your monthly premium is likely to be lower.