This represents the amount of eligible medical expenses that must be paid by the insured before the insurance company begins to reimburse for covered expenses. As an example, if you purchase a plan with a $500 deductible and incur $10,000 of eligible medical expenses, the insurance company will begin to reimburse for expenses after you have paid the first $500 of your medical bills, so in this example, Insurance would cover $9,500 of the medical bill.
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