What does the term "out-of-pocket cost of care" refer to?

The term "out-of-pocket cost of care" specifically refers to the direct expenses that a patient must pay for healthcare services, aside from what may be covered by their health insurance. This can include deductibles, copayments, and any uncovered services. Understanding this concept is important for patients as it directly impacts their financial responsibility for healthcare.

While the total cost of healthcare services can encompass many factors, it includes costs that the insurance may cover. Health insurance premiums represent the regular payment made to maintain insurance coverage but do not reflect direct costs incurred at the point of care. Similarly, the cost of healthcare not covered by insurance could refer to many different issues, but it doesn't comprehensively represent all out-of-pocket expenses a patient may face. Thus, the focus on the exact amount owed by a patient makes the choice relevant to the meaning of out-of-pocket costs.