Coinsurance is the percentage of covered health care costs that an individual is responsible for paying after the deductible has been met. It typically operates on a fixed ratio, meaning the individual will always be charged the same percentage of the total bill each time. Once the out-of-pocket maximum is reached, the individual stops paying coinsurance, and the insurance company covers 100% of the remaining costs for covered services
. For example, if a health insurance plan has a coinsurance rate of 20% and the allowed amount for a service is $100, the individual would pay $20 if the deductible has been met, and the insurance company would pay the rest. If the deductible has not been met, the individual would pay the full allowed amount
. Coinsurance is different from a copay, as it is a percentage of the cost of a service, whereas a copay is a fixed dollar amount paid at the time of service. It is common in health insurance and is also found in some property insurance policies
. In summary, coinsurance is an important factor to consider when reviewing health insurance plans, as it determines the individual's share of the costs of health care services after the deductible has been met
