The allowed amount is the most a health plan will pay for a health service. A health service could be a test, procedure, or something else. Your plan's in-network providers have signed a contract to provide services at a discount. They agree not to charge more than this allowed amount to members of the health plan.
Out-of-network providers may charge more than the allowed amount. If you see an out-of-network provider who charges more, you may have to pay the extra cost. You can avoid having to pay more by only using providers in your health plan's network.