What does "co-insurance" refer to?

Co-insurance refers to a cost-sharing mechanism in health insurance where the insured is responsible for paying a specific percentage of their medical expenses after they have met their deductible. This means that once an insured individual has paid the deductible (the amount they need to pay before the insurance starts to contribute), they will continue to incur some costs, but instead of paying the full amount, they will share the cost with their insurer.

For example, if a policy has a 20% co-insurance clause, after the deductible is fulfilled, the policyholder will be responsible for paying 20% of the covered medical expenses, while the insurer covers the remaining 80%. This structure encourages individuals to consider their healthcare expenses, as they are directly responsible for a portion of the costs, motivating them to seek cost-effective care and be mindful of their medical spending.

The other options describe different concepts in health insurance, such as flat rates, annual limits, and coverage specifics, but do not accurately capture the essence of co-insurance as a mechanism for shared financial responsibility after the deductible.