I am shopping around for health insurance for the first time in my life, and I am having a hard time understanding what a deductible is. For example, I am looking at a plan that includes a $7150 yearly deductible with a $140 monthly premium. The EOB says “You must pay all the costs up to the deductible amount before this plan begins to pay for covered services you use.”

Help me understand what this means. Does that really mean that I have to pay $7150 towards my health insurance before it will begin to cover costs such as hospitalizations, prescriptions, outpatient visits, etc? I make less than 10 grand a year. Does this plan make sense for me?