What does coinsurance mean in medical

Coinsurance is a cost-sharing arrangement between an insured person and their insurance company. It requires the insured person to pay a percentage of the cost of covered medical services, while the insurance company pays the remaining percentage.

The coinsurance percentage is typically a fixed amount, such as 20%, 30%, or 40%. This means that the insured person is responsible for paying 20%, 30%, or 40% of the cost of covered services, while the insurance company pays the remaining 80%, 70%, or 60%.

Coinsurance is different from a deductible, which is a fixed dollar amount that the insured person must pay before the insurance company starts to cover any of the costs of covered services.

Coinsurance is also different from a copay, which is a fixed dollar amount that the insured person pays for each covered medical service.

Here is an example of how coinsurance works:

* An insured person has a coinsurance percentage of 20%.

* The insured person receives medical services that cost $1,000.

* The insurance company pays 80% of the cost of the services, which is $800.

* The insured person pays the remaining 20% of the cost of the services, which is $200.

Coinsurance can help to reduce the amount of money that an insured person has to pay for medical services, but it can also increase the amount of money that the insured person has to pay out-of-pocket. It is important to understand your coinsurance percentage before you receive medical services so that you can plan for the costs.