Language desk / reviewed term
What does Allowed Amount mean?
The maximum amount a plan recognizes for a covered service when calculating payment and cost sharing.
Illustration — not a plan price
For in-network care, member cost sharing is generally calculated from the contracted allowed amount rather than the provider's original charge.
The actual plan document controls. Verify its definitions, network, exclusions, dates, and amounts before relying on the illustration.
Definitions here are never for sale — no plan is recommended on a comprehension page.
Source: HealthCare.gov — Glossary · Verified 2026-08-11 · Reviewed by the MedicalRecords.com editorial team · Last reviewed August 11, 2026