Coinsurance means the percentage of a covered medical bill that you pay after you’ve met your deductible, while your insurance pays the rest. For example, with 20% coinsurance, you pay 20% of the allowed cost and your insurer pays 80%.

Simple definition

  • Coinsurance is cost-sharing between you and your insurance company on each covered service. You pay a set percentage; the plan pays the remaining percentage.
  • It usually applies after you’ve met your deductible, not before.

Quick example

  • Say your plan has 20% coinsurance and you’ve already met your deductible.
  • If a covered service costs 1,000 (allowed amount), the insurer might pay 800 and you pay 200 (your 20% coinsurance).

How it fits with other costs

  • Deductible : What you must pay first in a year before coinsurance usually kicks in.
  • Coinsurance : The ongoing percentage split after the deductible, until you hit your yearly out‑of‑pocket maximum.
  • Out‑of‑pocket max : Once your total spending reaches this cap, the plan typically pays 100% of covered services for the rest of the year.

Information gathered from public forums or data available on the internet and portrayed here.