What is an annual maximum?

An annual maximum is a limit on the amount of medical care that an insurance company will pay for in a single year. In Virginia, health insurance plans usually include an annual maximum that the insurance company will cover for medical expenses. This means that if your medical expenses exceed your policy’s annual maximum for the year, you will be responsible for paying the remaining costs out-of-pocket. The specific dollar amount of the annual maximum may vary based on the type of plan and coverage you have. For example, a health insurance plan may have an annual maximum of $10,000, which means that your health insurance will cover up to $10,000 in medical expenses for the year. Any expenses above that amount would be your responsibility to pay. It’s important to review your plan’s annual maximum, as hitting this mark could leave you with large medical costs to cover out-of-pocket.

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