Which term refers to the percentage of costs of a covered health care service you pay after you've paid your deductible?

• A. Copayment
• B. Deductible
• C. Coinsurance
• D. Premium

Answer: (C)

Coinsurance is the share of the cost you pay for covered services after you’ve met your deductible. It’s expressed as a percentage, so you continue to pay a portion of the bill even once the deductible is satisfied. For example, if your deductible is $1,000 and your coinsurance is 20%, a $5,000 bill would require you to pay $1,000 (the deductible) plus 20% of the remaining $4,000, which is $800, with the insurance covering the rest. This differs from a copayment, which is a fixed dollar amount you pay for a service, from a deductible, which is the upfront amount you must pay before coverage kicks in, and from a premium, which is the regular payment you make to keep your plan active.