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Medical Billing Glossary

Deductible

The amount a patient pays out of pocket before their plan starts to share costs.

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Definition

A deductible is the amount a patient must pay for covered services before their health plan begins to pay its share. It generally resets each plan year, and services applied to the deductible are the patient’s responsibility based on the allowed amount.

Until the deductible is met, many services are paid entirely by the patient at the plan’s allowed rate, which is why verifying deductible status up front matters.

Why it matters for billing

Deductibles have grown, so more of a practice’s revenue now comes from patients rather than payers. Knowing where a patient stands against their deductible before the visit makes it possible to collect the right amount up front instead of chasing it later.

Related terms

Terms that come up alongside Deductible in the revenue cycle.

Billing that gets Deductible right

EnVisionMD RCM handles eligibility, coding, documentation, denials and follow-up end to end — so the details behind terms like this one are managed for you, not left to chance.

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Deductible — frequently asked questions

When does a deductible reset?

It typically resets at the start of each plan year, so a patient’s remaining deductible changes over the year.

Who pays for services applied to the deductible?

The patient, based on the plan’s allowed amount, until the deductible is satisfied.

Authoritative References

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