Accessibility Menu

What Does Out of Pocket Mean? Definition & Financial Implications

By Kristi WaterworthUpdated Aug 12, 2025 at 12:33 PM

Key Points

  • Out-of-pocket expenses include deductibles, copays, and coinsurance until a maximum is reached.
  • Choosing a health plan aligned with expected annual healthcare costs can optimize expenses.
  • Out-of-pocket maximums are crucial in capping your yearly healthcare spending.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.