What does coinsurance represent in health insurance?

Coinsurance represents the percentage of a medical bill that an insured individual is required to pay after they have met their deductible. In this context, coinsurance typically indicates a shared financial responsibility between the insurer and the insured. For example, if a health insurance plan includes a coinsurance rate of 20%, and a patient incurs a medical expense of $1,000 after their deductible has been met, the patient would be responsible for paying $200 (20% of $1,000), while the insurance company covers the remaining amount.

This system is designed to help manage healthcare costs, encouraging individuals to be more mindful of their healthcare spending since they are paying a portion of the expenses as they receive services.