Which type of health coverage commonly utilizes a deductible?

The type of health coverage that commonly utilizes a deductible is a major medical policy. Major medical insurance is designed to cover significant healthcare costs and typically includes various out-of-pocket expenses, such as deductibles. A deductible is the amount the insured must pay for healthcare services before the insurance begins to cover the remaining costs. This type of policy often features high coverage limits and is intended for serious or prolonged illnesses and accidents, making the financial responsibility outlined by deductibles an important component of the plan.

In contrast, health maintenance organizations (HMOs) usually require members to pay a copayment for services rather than a deductible, focusing on preventive care and a network of providers. Short-term health insurance often provides limited coverage for unforeseen medical issues and may operate with a minimal or no deductible, depending on the plan structure. Critical illness insurance specifically pays a lump sum upon the diagnosis of a critical illness, rather than covering healthcare expenses, and typically does not involve deductibles as part of its structure.