Out-of-pocket costs refer to the expenses that individuals must pay directly for services or products, rather than through insurance or other forms of financial assistance. These costs can include deductibles, copayments, and coinsurance in the context of healthcare, as well as expenses for items like prescription medications or medical devices. These costs can vary widely depending on the type of service and the individual's insurance plan. Understanding out-of-pocket costs is essential for budgeting and financial planning, as they can significantly impact overall expenses, especially for those with chronic conditions or high medical needs.