What Does Coinsurance Mean?
Coinsurance simply means that both you and the insurance company share a percentage of the cost of usual, customary and reasonable charges for covered services. The policy you purchase defines a percentage that you are responsible to pay and that the insurance company is responsible to pay. (For example, and “80/20” plan means you, as the member, are responsible to pay for 20% of covered charges, and the insurance company will pick up the remaining 80% of covered charges.) There is a catch, however. With an Indemnity insurance, the coinsurance amount refers to the percentage of customary and reasonable charges you and the insurance company are responsible for paying for. Not a percentage of total charges a doctor or provider of service may charge.
