What is Co-Insurance?
For some service categories, you may share in the cost of your dental expenses. This is represented as a percentage of the usual, customary, and reasonable level (if a non-network dentist is used) or a percentage of the negotiated fee for covered services (if a network dentist is used). The percentage of co-insurance usually depends on the type of service received: Basic or Major. Network services are typically reimbursed at a higher co-insurance percentage.
Co-Insurance is a form of property insurance in which the insured shares in losses proportionately to the extent that the amount of insurance falls short of a specified percentage of the value of the insured property. For example, if you insured your goods for $10,000 while the entire actual value of the goods is $100,000, your proportionate claim settlement amount (in case of a claim) would be 1/10 of the actual value. A lost table worth $1,000 will yield a settlement in the amount of $100 (minus any deductible, if applicable).
Co-Insurance is separate from your deductible and any co-payments you may be required to provide. This amount can range anywhere from 10% to 80%, depending on your health insurance provider. For example, your doctor performs a procedure that costs $500. You are required to provide a 10% co-insurance payment. This means that you would need to provide $50 and the insurance company will provide the remaining $450.
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