What is the term for the maximum amount you have to pay out-of-pocket for medical expenses each year?

The term that refers to the maximum amount you are required to pay out-of-pocket for medical expenses each year is indeed the out-of-pocket limit. This limit represents the cap on what you will spend on healthcare services within a calendar year. Once you reach this limit, your health insurance typically covers 100% of allowed amounts for covered services for the remainder of that year, significantly reducing your financial burden.

The out-of-pocket limit encompasses various costs, including deductibles, coinsurance, and copayments, but does not include premiums or expenses for services that are not covered by your insurance plan. This terminology is crucial for understanding how health insurance plans protect consumers from excessive medical costs, making it easier to budget for healthcare expenses.