Differentiate deductible from the out-of-pocket maximum.

• A. The deductible is the total yearly cost cap, while the out-of-pocket maximum is what you pay before coverage begins.
• B. The deductible is paid only when you reach the out-of-pocket maximum.
• C. The deductible is what you pay before coverage begins; the out-of-pocket maximum is the cap on your annual spending for covered services.
• D. Both terms refer to the same annual expense.

Answer: (C)