An annual maximum is the highest dollar amount your insurance plan will pay for a specific benefit category within a single plan year. Once you reach the annual maximum, you are responsible for 100% of any additional costs in that category until the plan year resets. Annual maximums vary by benefit type — for example, a plan might have a $1,500 annual maximum for prescription drugs, $750 for dental, $500 for vision, and $500 combined for paramedical services. Some plans have separate maximums for each paramedical practitioner type (such as $500 for massage and $500 for physiotherapy). Understanding your annual maximums helps you budget for out-of-pocket costs and choose a plan that matches your anticipated needs.