North Dakota Health Insurance Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Define "out-of-pocket maximum."

The highest premium an insured must pay in a year

The maximum amount a policyholder pays before coverage is 100%

The term "out-of-pocket maximum" refers to the maximum amount of money that a policyholder is required to pay for covered health care services in a given year before their health insurance begins to pay 100% of the costs. This limit includes expenses such as deductibles, copayments, and coinsurance, but not premiums. Once this threshold is reached, the insurance provider covers all additional eligible medical expenses for the remainder of the plan year, meaning the insured is not responsible for any further out-of-pocket payments for those services.

Understanding this concept is crucial for individuals as it helps them grasp their financial exposure in health care costs and plan their budgets accordingly. It acts as a protective measure against excessive financial burden due to unexpected health issues or extensive medical treatments.

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The minimum amount an insured must pay for essential services

The yearly limit on insurance discounts

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