What is the total amount of covered medical expenses a policyholder must pay before receiving insurance benefits called?

The total amount of covered medical expenses that a policyholder must pay before receiving insurance benefits is referred to as the deductible. This is a fundamental concept in health insurance policies, where the deductible amount represents the initial out-of-pocket expense the insured individual is responsible for before the insurance company begins to cover eligible medical costs.

When a policyholder meets their deductible, their insurance plan activates its benefits, which may include cost-sharing features like coinsurance or copayments for further medical services.

The other terms listed, such as allowed charges, refer to the maximum amount that an insurance company will pay for a specific service, while coinsurance pertains to the percentage of costs the insured pays after meeting their deductible. Beneficiary, on the other hand, relates to individuals designated to receive benefits from an insurance policy, rather than describing a part of a policyholder's financial responsibility. Understanding the deductible is crucial in managing healthcare expenses and insurance coverage effectively.