A deductible is the amount you pay each year before your insurance pays for any medical services, appointments, or prescriptions. For example, if your insurance plan has a $1,000 annual deductible, you would have to pay for any medical costs up to $1,000 each year before your insurance begins paying for services. A copay is usually a much smaller amount than the deductible and is a fee due at the time of a medical service appointment or prescription purchase.