A deductible is the annual expense you are required pay before your health insurance pays anything. Deductibles do not apply to all services, so it is important to understand your plan and its coverage. For example, your plan may require that you pay the first $1,000 of your healthcare bills before your health insurance pays anything. Your out-of-pocket cost is based on the total amount that your insurance has allowed for the visit – not on the clinic charges. In instances where the services you are receiving are subject to your deductible, you will be financially responsible for the charges until you have met your deductible. Once the deductible is met, the insurance company will then begin to pick up some of the financial responsibility for the services.