Health Insurance Terminology-Maximum Out of Pocket Costs

As we know the deadline (December 15)to update our Health Insurance application is approaching. This is a time when you can go through your application and update your Income, in case you foresee changes next year. You can also switch over to a new plan. Nonetheless everyone has to visit their Account and confirm whether they want to stick to their existing plan or switch over to a new one.

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“Maximum Out of Pocket Cost” is a term which you might have encountered quite often while browsing through different plans.  It is the amount of money you pay in a year after which the Insurance Company bears 100% of the cost. For Example, Let’s say the Maximum Out of Pocket Cost for your Health Insurance Plan is $3,000 and in this year you have already spent $3,000. Now suppose you face a medical Issue where you visit a doctor and get a bill of $800. In this case, your health Insurance company would bear the full amount ie. they would pay $800. So for any medical bills till the end of the year, the Insurance company would take care of it and you won’t have to spend a single penny out of pocket.

Please visit the Health Insurance Market Place or the website of your Health Insurance provider to update your application.

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