What does "coinsurance" mean in health insurance?

Coinsurance refers to the percentage of costs for covered healthcare services that the insured is responsible for paying after they have met their deductible. In a typical health insurance plan, once a patient has fulfilled their deductible, they still share the payments for healthcare services with their insurance provider. This sharing occurs in the form of a percentage, with the insured paying a specified portion and the insurer covering the remaining amount.

For example, if a patient has a coinsurance rate of 20%, after meeting their deductible, they would pay 20% of the costs for eligible healthcare services, while their insurance would cover the remaining 80%. This arrangement encourages insured individuals to be mindful of their healthcare expenses, as they bear a portion of the cost even after the deductible is satisfied. Coinsurance is a common feature in many health insurance policies and serves to balance the financial responsibilities between the insurer and the insured.