Coinsurance is a term used in insurance to describe the splitting or spreading of risk among multiple parties. In health insurance, coinsurance refers to the percentage of costs of a covered health care service that an individual pays after they have paid their deductible. For example, if an individuals health insurance plan has a coinsurance rate of 20%, and the cost of a covered health care service is $100, the individual would pay $20, and the insurance company would pay the remaining $80. Coinsurance is also used in other types of insurance, such as property insurance, where it refers to the amount of coverage that the property owner must purchase for a structure. The following are some key points about coinsurance:
- Coinsurance is the percentage of costs of a covered health care service that an individual pays after they have paid their deductible.
- Coinsurance is used in other types of insurance, such as property insurance, where it refers to the amount of coverage that the property owner must purchase for a structure.
- Coinsurance is expressed as a percentage.
- Coinsurance is different from a copay, which is a fixed amount an individual pays for a health care service, usually at the time of service.
