How are "out-of-pocket costs" defined?

Out-of-pocket costs refer specifically to medical expenses that are not covered by insurance. This includes various expenses that the insured individual must pay directly, rather than having them reimbursed by their insurance provider. Such expenses can encompass copayments, deductibles, or any other costs associated with medical care that exceed what the insurance policy will pay.

This definition highlights the distinction between what is covered by insurance versus what an individual is responsible for. In contrast, expenses reimbursed by insurance, in-office consultation fees, or drugs that are marketed at lower prices do not fit the definition of out-of-pocket costs, as they either fall under the insurance coverage or do not represent direct costs incurred by the patient.