What is the purpose of the "out-of-pocket maximum"?

The purpose of the "out-of-pocket maximum" is to cap the total amount that an insured individual will pay within a policy year for covered healthcare services. Once this maximum is reached, the insurance provider will cover 100% of the costs for the covered services for the remainder of the year. This feature is designed to protect consumers from excessive medical expenses and provides a sense of financial security regarding their healthcare costs.

The other options do not accurately represent the function of the out-of-pocket maximum. While limiting premium costs and defining maximum benefits may be aspects of a health insurance plan, they do not relate to the specific cap on out-of-pocket expenses. Similarly, establishing income requirements is not a characteristic associated with out-of-pocket limits, as these limits are primarily concerned with the insured's share of expenses rather than their income level.