What is the coinsurance limit? What is the total annual out-of-pocket cost for covered expenses?
Some managed care plans require their members to pay a small percentage of the charges beyond the deductible, up to a point. For example, you might pay a $500 deductible, plus 10 percent of the next $2,000. Your coinsurance limit plus your deductible is the point where your health plan takes care of all covered charges — in this case $2,500 — up to any policy limit. And your out-of-pocket maximum for any year is the deductible plus 10 percent of $2,000 — or a total of $700. Talk to your agent regarding how coinsurance and out-of-pocket expenses work.