Friday, February 7, 2014

What's an Out of Pocket?

What the heck is an "out of pocket"?

Had a client call just yesterday and wondering if a recent hospital stay for her husband was going to result in them paying their "out of pocket" amount in their Medicare plan.  This plan had a per day co pay and her husband was hospitalized for 2 days so in this case the co pay amount they are responsible to pay does go towards the out of pocket but nope they don't "pay the out of pocket".

Think of it like a maximum liability; it's the most you'd have to pay in a cal year before the plan picks up the full tab for covered expenses.  Kind of like a safety net- always great to have.

 Did you know traditional Medicare part B has no such out of pocket max?  Yikes you can get into a world of financial trouble with this option!  

No comments:

Post a Comment