What does "co-insurance" mean in the context of health insurance?

Co-insurance in the context of health insurance refers to the percentage of costs that a policyholder is responsible for paying after the deductible has been met. This cost-sharing method comes into play once the insured party has already paid their deductible, which is the specified amount they need to pay out-of-pocket before the health insurance begins to contribute to the expenses.

For example, if a health insurance policy includes a 20% co-insurance clause and the service costs $1,000, the policyholder would pay 20% of that amount ($200) while the insurer would cover the remaining 80% ($800). This structure is designed to share medical expenses between the insurer and the policyholder and can influence healthcare utilization as it provides an incentive for the insured to consider the cost of services.

Other options do not accurately describe co-insurance. The total amount paid by the insurer for a claim does not reflect the concept of co-insurance; it simply describes the insurer's total liability for a claim. The full amount that a policyholder pays before coverage kicks in pertains to the deductible, not co-insurance. Meanwhile, the part of the premium paid by the employer relates to the funding of the insurance policy itself rather than the defined sharing of costs associated