What is co-insurance in a health insurance policy?

Co-insurance refers to the percentage of healthcare costs the insured must pay after they have met their deductible. This arrangement is a key aspect of many health insurance plans, as it outlines how costs are shared between the insurer and the insured. For example, if a health plan has a co-insurance rate of 20%, after the insured pays their deductible, the insurer will cover 80% of the costs for covered services, while the insured is responsible for the remaining 20%.

Understanding co-insurance is important for budgeting healthcare expenses and helps policyholders grasp the financial responsibilities they may face when utilizing medical services. This arrangement encourages the insured to be mindful of healthcare costs while still ensuring that they receive necessary medical care.