Final answer:
MA plans have a maximum annual limit on out-of-pocket (OOP) costs called an annual limit. This limit helps protect individuals from excessively high medical expenses.
Step-by-step explanation:
MA plans have a maximum annual limit on out-of-pocket (OOP) costs called an annual limit.
Health insurance plans often have various costs associated with them, such as deductibles, co-insurance payments, and co-payments. In the case of MA plans, there is a maximum limit on the amount a person has to pay out-of-pocket in a given year, which is known as the annual limit. This limit helps protect individuals from excessively high medical expenses.
For example, if an MA plan has an annual limit of $5,000, once a person has paid $5,000 in out-of-pocket costs for covered services in a year, the plan will cover 100% of any additional costs for the rest of the year.