What is "coinsurance"?

Coinsurance refers to the percentage of costs of a covered healthcare service that the insured is responsible for paying after they have met their deductible. Once the insured has satisfied their deductible, coinsurance kicks in and typically requires the insured to pay a certain percentage of the remaining medical expenses for services covered under their health insurance plan. For example, if a plan has an 80/20 coinsurance arrangement, the insurer pays 80% of the costs after the deductible is met, and the insured pays the remaining 20%.

This concept is crucial in understanding how healthcare expenses are shared between the insurer and the insured, impacting the overall financial responsibility of patients when they seek medical care. Knowing how coinsurance operates can aid policyholders in budgeting for healthcare costs and navigating their insurance benefits effectively.