A deductible is the amount of money you need to pay before your insurance begins to pay according to the terms of your policy. An out-of-pocket maximum refers to the cap, or limit, on the amount of money you have to pay for covered services per plan year before your insurance covers 100% of the cost of services.
Why is an out-of-pocket max higher than a deductible?
An out-of-pocket maximum is always higher than (or equal to) a deductible. The deductible is the first threshold you reach at the beginning of the...
What happens when you meet your out-of-pocket maximum?
After your total health care spending toward the deductible, copayments and coinsurance reaches the out-of-pocket max, your health insurance policy...