What is a coinsurance penalty?

A coinsurance penalty is a type of health insurance law in Washington. It is a fee that is charged when a policyholder does not meet the criteria for coinsurance, which is the amount of health care costs that the insured person pays out of pocket. Coinsurance is usually a percentage of the total cost of medical care, such as 20 percent of the cost. A coinsurance penalty is an additional fee on top of the coinsurance amount that applies when the policyholder has not met the coinsurance minimum. For example, if the coinsurance minimum is 20 percent and the policyholder only pays 10 percent, then the policyholder is subject to the coinsurance penalty. The penalty is meant to encourage policyholders to take responsibility for their health care costs, as well as encourage them to act in the best interest of their health. It is also meant to protect insurers from incurring high costs due to policyholders not meeting the coinsurance minimum.

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What is a coinsurance penalty?

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