One of the most common questions I receive as an agent is: “What does coinsurance mean?”
By definition, coinsurance is the percentage that you are obliged to pay for covered medical services after you’ve satisfied any co-payment or deductible required by your health insurance plan.
Here’s another way to think about it: the insurance company may limit coverage for certain services to, say, 80% of charges. So, for example, if your insurance benefits cover 80% of x-ray charges, you will need to pay the remaining 20%, even if your annual deductible is already met. That 20% is considered coinsurance.
When reviewing and shopping for health insurance, coinsurance is typically displayed as the percentage in which you would be responsible. The insurance company would pay the remainder of the medical bill.
To learn even more about coinsurance check out the video below:
How does a coinsurance work with a health insurance policy?
Click here to find out more about what coinsurance means for customers.
