What does Out-of-Pocket Limit mean? Read on to discover the definition & meaning of the term Out-of-Pocket Limit - to help you better understand the language used in insurance policies.
An out-of-pocket limit is the maximum amount that a policyholder will have to pay for covered medical expenses during a policy year before a health insurance plan pays for any further covered care. Deductibles, co-pay, and coinsurance all count toward this amount. The Affordable Care Act placed caps on out-of-pocket limits to help make health services more affordable.
We hope the you have a better understanding of the meaning of Out-of-Pocket Limit.