What is the stop loss limit in health insurance?

The stop loss limit in health insurance refers to the threshold beyond which the insured no longer has to pay for their medical expenses. Once the individual has reached this limit, the health insurance provider covers 100% of the allowed medical costs for the remainder of the policy period. This mechanism protects policyholders from excessive out-of-pocket expenses and provides financial security by capping the costs they may face during a year of medical treatment.

In this context, the stop loss limit specifically defines the point at which the policyholder is no longer responsible for covering any more costs, ensuring they do not face unforeseen financial burdens due to high medical expenses. This feature is especially crucial for individuals with serious or chronic health conditions, who may face significant medical bills over time.