What does the term "out-of-pocket maximum" signify in a health insurance plan?

The term "out-of-pocket maximum" refers specifically to the highest amount a policyholder will have to pay for covered services within a given plan year. This means that once a policyholder has paid this amount in deductibles, copayments, and coinsurance for covered medical services, the health insurance plan will then cover 100% of the costs for any additional covered services for the remainder of that year. This limit provides financial protection against excessive medical expenses and ensures that there is a cap on the out-of-pocket costs that the policyholder is responsible for, promoting accessibility to necessary healthcare services without the risk of financial strain due to high medical bills.