Coinsurance (health)
Certified Financial Planner glossary · Certified Financial Planner
Definition
The percentage of covered charges the insured pays after the deductible and before the out-ofpocket maximum.
Coinsurance (health) in plain English
After a $2,000 deductible, the plan pays 80% and the patient pays 20% until the out-of-pocket max. That percentage split is coinsurance in health coverage: the share of covered charges the insured pays after the deductible and before the out-of-pocket maximum. It is not a flat copay, and it is not the property-insurance coinsurance clause that penalizes underinsurance. Decide whether the stem is splitting a medical bill or cutting a building claim.
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