In the context of healthcare billing, what does coinsurance refer to?

Coinsurance refers to the arrangement where the cost of covered healthcare services is shared between the insurer and the patient, usually expressed as a percentage. For example, if a health plan has a coinsurance rate of 20%, this means that the insurance company covers 80% of the costs for certain services after the deductible has been met, while the patient is responsible for the remaining 20%.

This concept is crucial in healthcare billing as it impacts both the patient's financial responsibility and the insurer’s contribution towards the cost of care. It promotes shared responsibility between the patient and the insurer, encouraging patients to consider the costs of the services they receive.

The other options describe different aspects of healthcare costs. One option refers to the total amount a patient pays without any assistance from insurance, which does not illustrate the shared payment nature of coinsurance. Another option indicates a fixed monthly payment, also known as a premium, which is unrelated to the concept of coinsurance. Lastly, the statement regarding the provider's charges for a service overlooks the shared cost structure that defines coinsurance, as it does not connect the payment responsibilities of both the patient and the insurer.