14.3.6: Coinsurance
Coinsurance is a cost-sharing arrangement for medical expenses when the insurance does “kick in”. It’s typically a percentage of the total cost that is paid by the insured vs. the insurance company. So for example, our broken arm from earlier turns into an ER visit, X-rays, a hand surgery, and hospital stay, totaling $150,000. If the deductible is $3500, the patient would pay that first. Then let’s say they had an 80/20 coinsurance plan: their insurance company would pay 80% and they would pay 20% of the remaining bill (Cigna Healthcare, 2023).