What is "coinsurance" in health insurance terms?

Coinsurance in health insurance refers to the percentage of costs that a policyholder is responsible for paying for covered health care services after they have satisfied their deductible. This means that once the policyholder has paid their deductible amount, they will then share the cost of covered services with their insurance company, typically in a specified ratio.

For example, if the policyholder’s coinsurance is set at 20%, it means they will pay 20% of the medical costs for services received, while the insurance company will cover the remaining 80%. This concept of sharing costs encourages policyholders to be more mindful of their healthcare spending.

The other options describe different aspects of health insurance. The premium is the total amount paid for a policy, not related to coinsurance. The fixed amount paid for each visit refers to a copayment rather than coinsurance. Lastly, the amount paid before insurance starts is defined as the deductible, not coinsurance. Understanding these distinctions is key for comprehending how costs are shared between insured individuals and their insurance providers.