Which of the following describes coinsurance in health insurance?

Coinsurance is a cost-sharing arrangement where the insured pays a percentage of the covered healthcare expenses after the deductible has been met. This means that once the insured has paid their deductible, they will share in the costs of future medical services with the insurance company, typically at a specified ratio (for example, 20% coinsurance means the insured pays 20% of the service cost while the insurer pays 80%).

This understanding of coinsurance clearly aligns with the definition provided in the context of health insurance. It is important to distinguish it from other terms associated with healthcare costs, such as co-pays, which represent fixed fees paid for specific services, or caps on out-of-pocket expenses, which limit total spending in a year. Coinsurance specifically applies to the ongoing division of costs between the insurer and the insured after deductible requirements are satisfied.