What is Coinsurance?
Answer:
Many health insurance policies require you, the policyholder,


to pay a portion of the cost of your healthcare through coinsurance. For example, if you have an 80/20 insurance rate, the insurance company will pay 80% of the covered expense and you will pay the other 20%. This means that if you go to a doctor who charges $100 for the office visit, your insurance will pay $80 and you will pay $20.

Different insurance policies have different coinsurance rates. You can get 90/10 or 70/30 coinsurance plans or plans with a flat co-payment per office visit. Coinsurance helps to keep your premiums more manageable.

Many insurance plans also limit your out-of-pocket costs each year to a predetermined cap. This cap protects you from severe financial losses each year should a catastrophic medical loss occur. For example, if your limit is $2000, the most you will pay is $2000. Once you’ve reached the limit, the insurance company will cover the entire cost of the covered expenses.
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