What is the Difference Between a Deductible and Out-of-Pocket Maximum?

Understanding terms such as “deductible” and “out-of-pocket maximum” is important but can be challenging. It is essential to understand these terms to accurately assess your healthcare costs. Your deductible is the amount you have to pay out of pocket before your insurance starts covering costs, while the out-of-pocket maximum is the most you’ll have to pay for covered services in a year. These terms have a significant impact on your financial health, so it’s important to have a deep understanding of them. In this comprehensive guide, we’ll thoroughly explore the meanings, differences, and consequences of these terms to help you direct the landscape of health insurance with confidence.