What is a coinsurance rate?

A coinsurance rate is a type of health insurance cost-sharing arrangement where the insured and insurer share the costs of a covered benefit. This arrangement is often specified in the terms of the policy and is important to know before selecting a health insurance plan. In Hawaii, coinsurance is generally a percentage of the total cost that the insured person must pay. For example, a plan with a 20% coinsurance rate would mean that the insured person pays 20% of the cost of a covered benefit, and the insurer pays the other 80%. Coinsurance is usually used in combination with a deductible. For example, after the insured person has met their deductible, the insurer and insured will then split the remainder of the cost of a covered benefit according to the coinsurance rate. Many factors determine the coinsurance rate in a health insurance plan, such as the type of coverage, the amount of coverage, the deductible, and the type of insurance provider. Knowing the coinsurance rate of a plan can help people make a more informed decision when selecting a health insurance plan in Hawaii.

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