The term “coinsurance,” which appears in every health insurance policy, refers to your out-of-pocket cost for a covered medical or healthcare expense following the payment of your healthcare plan’s deductible, which typically renews annually.
Coinsurance, which is typically stated as a percentage and is outlined in your policy documents, enables you to split the cost of the insured service with the insurance company. Your insurance company bears the insured portion, while you bear the remainder.
Key Takeaways Coinsurance is the amount you pay out of pocket for covered costs after paying your healthcare plan’s deductible.
In most cases, the insurance company covers the majority of any healthcare services that are deemed medically necessary, while you bear the balance.
You might be able to coordinate benefits to cover more of the cost if you have two different health insurance plans and one of them has a different coinsurance clause.
You will only be responsible for the coinsurance amount specified in your policy once you have met your annual deductible.
