How is "coinsurance" defined in health insurance?

Coinsurance is defined as the percentage of healthcare costs that the insured is responsible for paying after they have met their deductible. In a typical health insurance plan, once an insured individual reaches their deductible amount, the insurance company begins to share the costs of covered services. For example, if a person has a coinsurance rate of 20%, after meeting their deductible, they will pay 20% of the costs for services rendered, while the insurance company will cover the remaining 80%.

This arrangement helps to distribute the financial burden of healthcare costs between the insurance provider and the insured, incentivizing individuals to be mindful of their healthcare expenses. The other choices address different concepts in health insurance: the fixed amount paid per visit refers to co-payments, the total amount that must be paid before coverage begins is related to deductibles, and the reimbursement rate is connected to claims processing and not the concept of coinsurance.