Catastrophic Limit (Health Care) Law and Legal Definition

Catastrophic limit refers to the maximum amount of certain covered charges set by the insurance policy to be paid out of pocket of a beneficiary during a year. It is the amount of money that a person must pay out-of-pocket for health care expenses incurred by a catastrophic illness before the insurer pays bills. Catastrophic limit varies on the basis of person and family. Sometimes the catastrophic limit is limited to a specific event or illness.