What is an annual maximum?

An annual maximum is the maximum amount of money that an insurance company will pay out per year for health care costs. In North Carolina, insurance companies must provide a minimum annual maximum of $50,000 for general health care services. This includes doctor visits, hospitalizations, surgeries, lab services, and medications. This number can be higher depending on the type of health insurance policy. Annual maximums exist to reduce the risk of insurance companies having to pay out large sums of money in a single year. It also helps to keep insurance premiums from becoming too expensive for individuals. Annual maximums are important to consider when choosing a health insurance plan in North Carolina as they provide a limit to the amount of money that an insurance company can pay out for health care.

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