What does "co-insurance" refer to in health insurance?

Co-insurance in health insurance refers to a specific cost-sharing arrangement where, after the insured has met their deductible, they are responsible for paying a certain percentage of the covered healthcare costs. This arrangement means that both the insurer and the insured contribute to the total cost of care. For example, if a health plan has a co-insurance rate of 20%, once the deductible is satisfied, the insured would pay 20% of the subsequent medical expenses, while the insurance company would pay the remaining 80%. This method encourages shared responsibility between the insurer and the insured and often helps to manage healthcare costs.

Understanding co-insurance is essential as it affects how much a policyholder will ultimately pay out-of-pocket for medical services, especially when there is a significant amount of care needed. This can impact overall healthcare affordability and access for the insured. Other options do not accurately describe co-insurance and instead refer to different concepts within health insurance, such as the responsibilities of payment and coverage limitations.