What is an annual maximum?

Think of your annual maximum as an insurance bank account that renews every year. All services, unless otherwise stated, get deducted from the maximum. Once you have exhausted the bank account, any other services must be paid for out-of-pocket. Unused dollars do not roll over into the next year, unless your plan has a special rollover account. Each member on the plan has their own annual maximum account. Most plans have an annual maximum of $1,000 to $2,000 a year to offset out of pocket costs, however you are still expected to pay all copayments and deductibles that may apply.

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