What is a coinsurance clause?

A coinsurance clause is an agreement between an insurance company and an insured person that lays out who is responsible for what percentage of the medical costs. This agreement is typically found in health insurance policies, although it can also apply to other types of insurance policies. In Hawaii, this clause typically requires the insured person to pay a portion of their medical costs after the insurance company has made its payment. The amount the insured person must pay is referred to as the coinsurance rate, and is typically a percentage, such as 10%, 20%, etc. The coinsurance rate is often a percentage of the amount the insurance company has paid, up to a certain maximum. For example, let’s say a person’s insurance policy has a coinsurance rate of 20%. This means that after the insurance company has made its payment, the insured person must pay 20% of the remaining costs. Coinsurance clauses are important to understand, as they determine how much responsibility an insured person has for their medical expenses. Furthermore, the coinsurance rate can vary depending on the type of insurance policy and the insurer, so it is important to read the policy carefully and understand all the terms and conditions.

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What is a coinsurance clause?

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