Out-of-pocket

Referring to expenses or costs that are not reimbursed or covered by an insurance plan, employer, or other third party. These are costs borne directly by the individual or entity making the payment. This term is frequently used in the context of healthcare, where patients may incur out-of-pocket expenses for deductibles, co-pays, co-insurance, and services not covered by their insurance. The phrase emphasizes the financial burden or personal expense associated with a particular good, service, or event. It highlights the direct financial responsibility of the consumer or payer, as opposed to expenses covered by other means.

Out-of-pocket meaning with examples

• After his surgery, Mark was surprised by the high out-of-pocket costs for physical therapy. His insurance covered the procedure, but the deductible and co-pays for rehab significantly impacted his budget. This unexpected financial burden made managing his recovery more challenging.
• When Sarah had her wisdom teeth removed, she faced significant out-of-pocket expenses. While the surgery was covered, the anesthesia and follow-up appointments weren't fully covered by her insurance, leaving her with a substantial bill to pay.
• During the recent software upgrade, the company had to manage out-of-pocket expenses related to employee training and potential downtime. These costs were not budgeted, impacting the project's overall financial feasibility and timeline.
• Travelling to the remote village for the charity event, the volunteers covered their out-of-pocket expenses for transportation and accommodation. They were not reimbursed, highlighting their personal commitment to the cause and its financial requirements.