What does out of packet maximum means?

Out-of-pocket maximum refers to the highest amount a policyholder must pay for covered healthcare expenses in a given year before their health insurance starts to cover 100% of the costs. Once this limit is reached, the insurer is responsible for all additional covered expenses for the remainder of the year, excluding certain costs like premiums or non-covered services. This limit helps protect individuals from excessive medical expenses and encourages them to seek necessary care without financial worry.