What does the term "coinsurance" refer to in health insurance?

Coinsurance refers to the percentage of each medical claim that the patient is responsible for paying after their deductible has been met. This means that when a patient receives medical services, both the insurance company and the patient share the cost of those services. For example, if a patient has a coinsurance rate of 20%, they will pay 20% of the allowed amount for the service, while the insurance company covers the remaining 80%.

Understanding coinsurance is crucial for patients to comprehend their financial responsibilities when navigating their health insurance plans, and it plays a significant role in determining the total out-of-pocket costs for care. Knowing how coinsurance works can also help patients make informed decisions about their healthcare and financial planning.