Definition:
The annual out-of-pocket maximum is the maximum amount your insurer will require you to contribute out-of-pocket towards the cost of your care. This protects you from very high costs by capping the total amount you will have to spend on your health care each year.
You must meet your annual deductible first before the annual out-of-pocket maximum applies. Once the deductible is met, your copays will count towards your annual out-of-pocket maximum.
Once the annual out-of-pocket maximum is reached, you should no longer be required to contribute towards the cost of your care. In most cases, your insurance covers 100 percent of the services you require.
