What does "out-of-pocket maximum" mean in a health insurance plan?

The term "out-of-pocket maximum" refers specifically to the maximum amount a consumer is required to pay for covered health services within a given policy period, usually a year. Once this limit is reached, the insurance company covers 100% of the costs for additional covered services for the remainder of that policy period. This provision is designed to protect consumers from excessive financial burden and provides a sense of security regarding their potential healthcare expenses.

In contrast, the other options describe different aspects of health insurance coverage. The highest cost for non-covered services does not relate to the out-of-pocket maximum, as it concerns expenses outside of the insurance plan's coverage. The total expenses before insurance coverage begins refer to deductibles, which must be paid by the consumer before the insurance starts paying for services, rather than the limit on out-of-pocket expenses. Finally, the minimum amount that the insurance company will cover does not pertain to the out-of-pocket maximum but instead speaks to the company's obligations under the policy. Overall, understanding the out-of-pocket maximum can help consumers know their financial limits related to health care costs.