Coinsurance

The percentage of costs you share with your insurer after you have met your deductible. For example, with 80/20 coinsurance the insurer pays 80% and you pay 20%. Coinsurance applies until you reach your out-of-pocket maximum.

Real-World Example

After meeting his $1,000 deductible, Kevin has 80/20 coinsurance. On a $5,000 hospital bill he pays 20% ($1,000) and his insurer pays the other 80% ($4,000).

Related Terms

Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.

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