In health insurance, what does co-insurance mean?

Co-insurance refers to the percentage of the total cost for medical services that the policyholder is responsible for paying after the deductible has been met. This means that once a patient has paid their deductible, they will then share the cost of covered services with their insurance company according to a predetermined percentage. For example, if a policy specifies 20% co-insurance, the patient will pay 20% of each medical bill, while the insurance covers the remaining 80%.

Understanding co-insurance is essential for comprehending how health insurance works, particularly in managing out-of-pocket expenses. It plays a critical role in the overall cost-sharing structure between the insured and the insurer, impacting the financial obligations of the policyholder in receiving healthcare services.