The world of insurance can oftentimes be confusing. With so many specific terms, it can be easy to get overwhelmed. One important term to be familiar with is coinsurance. You’ve probably heard this word before, but what does it mean?
In plain terms, coinsurance is the shared cost between you and the insurance company, after your deductible is met. Your deductible is the amount you pay before your insurance plan kicks in.
For example, let’s say you’ve paid your deductible. You have a dentist appointment that costs $200. If your coinsurance is 20%, that means you only pay the 20%, or $40 in this case.
One thing to keep in mind when considering employee benefits is the relationship between monthly premiums and coinsurance. If your monthly premiums are higher, your coinsurance will most likely be lower. If your premiums are lower, your coinsurance will most likely be higher.