Health Plan Deductibles & Coinsurance: How do they work?

Health insurance deductibles and coinsurance are two types of cost-sharing that may be included in a health insurance plan. A deductible is the amount that the insured individual must pay out-of-pocket before the insurance plan begins to cover expenses. For example, if a plan has a $1000 deductible, the insured individual will have to pay the first $1000 of covered medical expenses before the insurance plan begins to cover any costs.

Coinsurance is the percentage of covered medical expenses that the insured individual is responsible for paying after the deductible has been met. For example, if a plan has 20% coinsurance, and the individual has met their deductible, the individual would be responsible for paying 20% of the remaining covered medical expenses, while the insurance plan pays the remaining 80%.