What is coinsurance?

Coinsurance is the limit on the amount an individual is required to pay for health care services covered by his or her benefits plan after the deductibles and any copays are paid. Refers to care received from the network of participating physicians, hospitals and health care professionals. It is often described as a percentage 90/10, 80/20, 70/30, followed by a dollar number. In the case of 80/20 it may say coinsurance maximum or out-of-pocket maximum $2000. This means that you pay 20% of medical costs until you've paid $2000 (20% of $10,000 is $2000).