What is coinsurance in the context of health insurance?

Coinsurance is defined as the percentage of health care expenses that a patient is responsible for paying after the deductible has been met. It represents a sharing of costs between the insurance provider and the insured, as the insurance company covers a certain percentage while the patient pays the remainder. This arrangement helps control health care costs by encouraging consumers to be more cost-conscious when seeking services.

In this context, once the insured has satisfied their deductible, coinsurance kicks in, and the patient may be required to pay a specified percentage of the total healthcare expenses for covered services. For example, if the coinsurance rate is 20%, the insurance company would cover 80% of the costs after the deductible has been paid, resulting in a shared financial responsibility between the patient and the insurer.

The other options pertain to different aspects of health insurance. The set fee paid by the patient each visit refers to a copayment, a fixed amount due at the time of service. An amount deducted from total charges before insurance pays describes the concept of a deductible, which is the total sum the insured must pay before insurance coverage begins. Lastly, a monthly fee for maintaining insurance coverage is known as a premium, which is not tied to the costs of individual health services.