What does annual maximum mean in health insurance?

Annual maximum refers to the maximum amount that a health insurance plan will pay for covered medical services during a policy year. Once the annual maximum is reached, the insured will be responsible for 100% of the cost of any additional covered medical services.

The annual maximum may vary depending on the type of health insurance plan and the level of coverage. Some plans may have a single annual maximum for all covered services, while others may have separate annual maximums for different types of services, such as medical, surgical, and prescription drug services.

It's important for individuals to be aware of the annual maximums in their health insurance plans to ensure that they have adequate coverage for their medical needs. If the annual maximum is reached, individuals may need to consider using alternative sources of funding for medical care, such as savings, credit, or medical financing options.