What is co-insurance?

Co-insurance is a type of health insurance in which the policyholder (you) and the insurance company both pay a portion of the cost of a medical service or prescription drug. For example, if you have a health plan with an 80/20 co-insurance, the policyholder pays the first 20% and the insurance company pays the remaining 80%. Co-insurance is typically used in conjunction with a deductible. A deductible is the amount of money you pay before the insurance company pays any of your medical bills. It’s important to understand your co-insurance agreement and how it works within the context of your health plan. In California, all health plans must cover certain services and prescriptions, even if you have co-insurance. Be sure to check with your health insurance company if you have any questions about your coverage. Co-insurance is different from co-payment, which is a set amount of money you pay each time you receive a healthcare service or drug. The amount of the co-payment is usually the same every time, and it is distinct from the amount you pay in co-insurance. When making medical decisions it’s important to factor in cost, so be sure to discuss the cost of any treatments with your doctor before deciding what’s best for you. If you have any questions about co-insurance, co-payments, or health plan coverage, you should speak with your insurance provider or a health insurance specialist in California to get the answers you need.

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What is co-insurance?

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