Which financial term refers to an annual cap on your uncovered healthcare costs?

The financial term that refers to an annual cap on uncovered healthcare costs is "out-of-pocket limit." This term defines the maximum amount that an individual will have to pay for covered healthcare services within a policy year. Once this limit is reached, the health insurance plan covers 100% of the remaining covered healthcare expenses for the rest of that year. This cap plays a crucial role in protecting consumers from excessively high medical costs and provides a clear understanding of their financial obligations regarding healthcare expenditures.

Understanding the context of the other terms helps clarify why "out-of-pocket limit" is the most accurate choice. A "max-out-of-pocket" is often used interchangeably with "out-of-pocket limit," but it typically refers more specifically to the total annual amount rather than the concept itself. A "health savings account" is primarily a savings tool to help individuals pay for qualified medical expenses with tax advantages, rather than a cap on costs. An "insurance deductible" is the amount an individual must pay out-of-pocket for healthcare services before insurance kicks in, which does not directly relate to annual caps on total uncovered costs.