Health and Life Insurance

Answer: C - Once the out-of-pocket maximum has been reached in a given year, an insured's health insurer will compensate them for 100% of their health care costs. This out-of-pocket maximum protects the insured in that the insurance company will take care of all of the remaining covered charges once the maximum has been reached. The insured may, however, still face other out-of-pocket costs that are not considered covered charges by the insurance policy.