Out-of-pocket expenses refer to costs that individuals must pay directly, rather than through insurance or other forms of reimbursement. These expenses can include medical bills, deductibles, copayments, and other costs not covered by health insurance. They can vary widely depending on the services used and the specific coverage of the insurance plan. These expenses can also apply to other areas, such as auto insurance or homeowners insurance, where policyholders may need to pay a portion of the costs for repairs or damages. Understanding out-of-pocket expenses is essential for budgeting and financial planning, as they can significantly impact overall expenses.