In health insurance, what does "co-insurance" mean?

Co-insurance refers to a cost-sharing arrangement in health insurance where the insured party pays a percentage of the costs of covered healthcare services after the deductible has been met. For instance, if a health insurance plan stipulates a co-insurance rate of 20%, and the total cost of a medical service is $100, the insured would pay $20, while the insurance company would cover the remaining $80.

This concept is vital in understanding how out-of-pocket expenses work in conjunction with deductibles and premiums. The co-insurance percentage generally applies to various services, including hospital stays, outpatient care, and certain medical procedures, promoting shared responsibility between the insurer and the insured while also encouraging more mindful healthcare consumption.

The other options present different concepts related to health insurance. A fixed amount paid for each healthcare visit describes a copayment, not co-insurance. The total amount of claims covered by the insurer does not reflect the individual financial responsibility portion of the insured. Finally, the amount of money above the deductible pertains to out-of-pocket expenses, but it does not accurately capture the essence of co-insurance, which is specifically about the percentage shared between the payer and the insured.