What does coinsurance refer to in a health insurance context?

Coinsurance refers to the portion of healthcare costs that the insured individual is responsible for paying after the deductible has been met. It is expressed as a percentage of the total cost of the healthcare service, with the insurance company covering the remaining percentage. For example, if a health plan has a coinsurance rate of 20%, the insurer would pay 80% of the costs while the insured would pay 20%.

This concept is crucial as it indicates shared responsibility for healthcare expenses between the insured and the insurer. It helps to ensure that both parties contribute to the costs associated with medical care, thereby promoting more mindful use of healthcare services. Coinsurance typically applies after the deductible has been fulfilled, meaning that any relevant expenses must exceed the deductible amount before coinsurance kicks in.