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Annual Limit

An annual limit on the total amount your insurance company will cover for benefits.

Detailed Explanation

While the ACA prohibits annual limits on essential health benefits, some older or non-ACA compliant plans might still have them. It's important to check your plan details.

Practical Example

Consider a scenario where John's old insurance plan had a $50,000 annual limit. If he had a major surgery and his medical bills exceeded that amount, he would be responsible for paying the rest out-of-pocket. Thankfully, most modern plans don't have such restrictive limits on essential care.

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