Catastrophic Limit

The most amount of money you will be required to pay out of pocket in the event that you have a large claim, or an abundance of claims in one year.  This is often referred to as your “Stop Loss”.  For instance, if you have a plan which has a $1000 deductible then pays 80/20 afterwards, and has a out of pocket max of $3000 on your 20% co-insurance, your total catastrophic limit will be $4000, your deductible of $1000 plus your 20% up to $3000.