$6.$ Terms of payment for medical expense plans

But I Paid My Premiums!

Besides possibly paying the premiums for a medical insurance plan, the insured is almost always responsible for making other, out$-$of$-$pocket payments. This practice helps keep overall costs down for both insureds and the insurance companies and ensures that insureds are informed about the costs of health care.

For each of the following scenarios, select which type of other cost or provision is illustrated.

Becky has had an illness and an accident during the year. Her combined out$-$of$-$pocket expense for both incidents was $$1,000.$ The insurance company will now start to pay some of her medical expenses. What does the $$1,000$ represent?