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But it’s worth noting that (at least here in the US), once you’ve paid the $1200, you often still have to pay 10 to 20% of costs (called a co-pay). A single serious incident (emergency hospitalization, for example) could easily still cost hundreds or even thousands.
There is also an out of pocket maximum with regards to that “co pay” or “co insurance”. My annual out of pocket maximum for co-pay and co-insurance is $2500.